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One-year Treasury bills currently earn 3.55 percent. You expect that one year from now, 1-year...

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Finance

One-year Treasury bills currently earn 3.55 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.75 percent. The liquidity premium on 2-year securities is 0.04 percent. If the liquidity premium theory is correct, what should the current rate be on 2-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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