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Business, 06.10.2019 05:00 kayabwaller4589

One-year treasury bills currently earn 2.30 percent. you expect that one year from now, 1-year treasury bill rates will increase to 2.50 percent and that two years from now, 1-year treasury bill rates will increase to 3.00 percent. the liquidity premium on 2-year securities is 0.15 percent and on 3-year securities is 0.25 percent. if the liquidity premium theory is correct, what should the current rate be on 3-year treasury securities? (do not round intermediate calculations. round your answer to 2 decimal places.)

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One-year treasury bills currently earn 2.30 percent. you expect that one year from now, 1-year treas...
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