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Business, 28.11.2019 06:31 haleyzoey7

One-year treasury bills currently earn 3.25 percent. you expect that one year from now, one-year treasury bill rates will increase to 3.45 percent and that two years from now, one-year treasury bill rates will increase to 3.95 percent. the liquidity premium on two-year securities is 0.05 percent and on three-year securities is 0.15 percent. if the liquidity theory is correct, what should the current rate be on three-year treasury securities?

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