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Business, 16.03.2020 23:22 tyshunstephens0

One-year Treasury bills currently earn 3.40 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.60 percent. The liquidity premium on 2-year securities is 0.09 percent. If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities?

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