Assuming that the liquidity premium theory is correct, on March 5, 2010, what did investors expect the interest rate to be on the one-year Treasury bill two years from that date if the term premium on a two-year Treasury note was 0.010.01% and the term premium on a three-year Treasury note was 0.040.04%?

The completed question is

Use the data on Treasury securities in the following table to answer the question:Date1 year2 year3 year03/05/20100.360.36% 0.860.86% 1.61.6%Source: U.S. Department of the Treasury.Assuming that the liquidity premium theory is correct, on March 5, 2010, what did investors expect the interest rate to be on the one-year Treasury bill two years from that date if the term premium on a two-year Treasury note was 0.040.04% and the term premium on a three-year Treasury note was 0.050.05%?

The expected interest rate is 3.013.01%.

Explanation:

Base on the scenario been described in the question, the interest rate in given as 3.013.01%.

i believe the answer is a.

explanation:

hope my answer has you if not i'm sorry.

answer; /// i believe the correct answer is (market share); good luck