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Interest rates for 3-year and 4-year Treasury notes are 2.25% and 2.6%, respectively. According to UET, what is the expected one-year rate during year 4.

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Interest rates for 3-year and 4-year Treasury notes are 2.25% and 2.6%, respectively. According to UET, what is the expected one-year rate during year 4. Elara)? Hint: Rx = [(1+ , R.)(1 + E( 203))(1+E(303) - 1 (R3 + 1)= (1+ ,R.)(1+E( 21.))(1+E( 372)) 1 R$ = [(1+yRx)(1+B( 272)(1+E(302)(1 + E047.j* - 1 GR + 1)*= (1+,R)(1+E( 27.)) (1 + ( 37:)) (1 + E( r)) = ( 1R3 + 1)*(1 +E( )) 3.423% 3.657% 2.951% 0.35%

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