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Business, 12.11.2020 19:10 rk193140

One-year Treasury bills currently earn 3.25%. You expect that one year from now, 1-year Treasury bill rates will increase to 3.45%. The liquidity premium on 2-year securities is 0.06%. If the liquidity premium theory is correct, what should the current rate be on 2-year Treasury securities?

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One-year Treasury bills currently earn 3.25%. You expect that one year from now, 1-year Treasury bil...

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