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A recent edition of The Wall Street Journal reported interest rates of 7.8 percent, 8.15 percent, 8.45 percent, and 8.55 percent for three-year, four-year, five-year,
A recent edition of The Wall Street Journal reported interest rates of 7.8 percent, 8.15 percent, 8.45 percent, and 8.55 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
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