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10. value 1.00 points Problem 6-5 Unbiased Expectations Theory (LG6-5) Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over
10. value 1.00 points Problem 6-5 Unbiased Expectations Theory (LG6-5) Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows 1R1-696. E(2/1)= 7%. E(3r1) 7.5%. E(4f1)-7.85% Using the unbiased expectations theory, calculate the current (long-term) rates for 1, 2-, 3-, and 4-year- maturity Treasury securities. (Round your answers to 2 decimal places.) Year Current (Long-term) Rates 4
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