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A recent edition of The Wall Street Journal reported interest rates of 4.05 percent, 4.40 percent, 4.78 percent, and 5.05 percent for three-year, four-year, five-year,
A recent edition of The Wall Street Journal reported interest rates of 4.05 percent, 4.40 percent, 4.78 percent, and 5.05 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory of the term structure of interest rates, what are the expected one-year rates during years 4, 5, and 6?
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