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Consider the following expected one-year interest rates. What would be the current two-year, three-year and four-year interest rates according to the unbiased expectations theory? 1R1

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Consider the following expected one-year interest rates. What would be the current two-year, three-year and four-year interest rates according to the unbiased expectations theory? 1R1 = 1.05% E(2R1) = 1.55% E(3R1) = 1.90% E(4R1) = 2.60% A. 1R2 = 1.17%; 1R3 = 1.40%; 124 = 1.69% B. 1R2 = 1.37%; 1R3 = 1.67%; 1 R4 = 1.94% C. 1R2 = 1.27%; 1 R3 = 1.48%; 1R4 = 1.82% D. 1R2 = 1.37%; 1 R3 = 1.55%; 1 R4 = 1.76% E. 1R2 = 1.30%; 1 R3 = 1.50%; 1R4 = 1.77%

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