Question Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows:

IR1 = 2.12%, E(2rl) =3.66%, E(3rl)-6.31%, E(4rl) = 7.83%

Using the unbiased expectations theory, calculate the current (long-term) rates for four-year-maturity Treasury securities