"> (Answered) 1) Date 1Year 2Year 3 Year 3/5/2010 0.36 % 0.94 % 1. - Tutorials Prime

## (Answered) 1) Date 1Year 2Year 3 Year 3/5/2010 0.36 % 0.94 % 1.

1) Date 1Year 2Year 3 Year 3/5/2010 0.36 % 0.94 % 1.

1)DateÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1YearÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2YearÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3 Year3/5/2010Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.36 %Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.94 %Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1.54 %Â Assuming that the liquidity premium theory isâ€‹ correct, on Marchâ€‹ 5, 2010, what did investors expect the interest rate to be on theâ€‹ one-year Treasury bill two years from that date if the term premium on aâ€‹ two-year Treasury note was 0.04 â€‹%Â and the term premium on aâ€‹ three-year Treasury note was 0.08 â€‹%?Â Â The expected interest rate is __Â Â â€‹%Â ?Â â€‹(Round your response to two decimalâ€‹ places.)Â 2) Suppose that the interest rate on aâ€‹ one-year Treasury bill is currently 7â€‹% and that investors expect that the interest rates onâ€‹ one-year Treasury bills over the next three years will be 8â€‹%, 9â€‹%, and 7â€‹%. Use the expectations theory to calculate the current interest rates onâ€‹ two-year, three-year, andâ€‹ four-year Treasury notes. Â The current interest rate onâ€‹ two-year Treasury notes is __%? â€‹(Round your response to two decimalâ€‹ places.)Â

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Jan 02, 2020

Solution~000.zip (25.37 KB)

STATUS

QUALITY

Approved

Jan 02, 2020

EXPERT

Tutor

#### YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.