Question 3

O out of 1.5 points Question 3 Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (i.e., year 2.3, and 4, respectively) are as follows: 1R1 = 3%, E(201)-3.5%, (371)= 4%, E(411)-4.5% Using the unbiased expectations theory, calculate the current rate for three-year Treasury securities