The Wall Street Journal6r16
The Wall Street Journal6r16
reports that the rate on 5-year Treasury securities is 5.65 percent and the rate on 6-year Treasury securities is 6.00 percent. The 1-year risk-free rate expected in five years is, E(), is 6.60 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the 6-year Treasury security, L? (Do not round intermediate calculations and round your final answer to 2 decimal places.)