19. Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: ₁R₁ = 5%, E(₂r₁) = 5.5%, E(₃r₁) = 6.5%, E(₄r₁) = 7.0% Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?

Multiple Choice

• (A) 6.33 percent

• (B) 6.00 percent

• (C) 6.75 percent

• (D) 7.00 percent