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Problem 2-8 (LG 2-7) Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (e. years

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Problem 2-8 (LG 2-7) Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (e. years 2, 3, and 4, respectively) are as follows: 1R1 - 0.41, 127 1) - 1.47, (31) - 8.81, B(4-1) - 9.15 Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two three-, and four-year-maturity Treasury securities. (Round your answers to 3 decimal places. (e.g. 32.161)) One-year Two-year Three-year Four year Current (Long-Term) Rates % % % %

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