One-year Treasury bills currently earn 2.85 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.35 percent and that two years from now, 1-year Treasury bill rates will increase to 3.75 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Current rate 2.82 X %

One-year Treasury bills currently earn 2.85 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.35 percent and that two years from now, 1.year Treasury bill rates will increase to 3.75 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct