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

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Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three years (ie. years 2, 3, and 4, respectively) are as follows: 11-2.74% (21) = 4.05%, E(31) = 4.55%, E(41) = 6.05% Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Years Current (Long-term) 1 2 Rates 3 4

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