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Return Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three years (i.e., years 2, 3, and

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Return Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 151 - 5% E(251) = 6%, 83) = 6.50% E(41) = 6.85% 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 2 decimal places.) * Answer is complete but not entirely correct. Years Current (Long-term) Rates 5.00 % N 701 3 % 3 3.50 x % 4.86 % %

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