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Suppose that the current 1-year rate and expected 1-year T-bill rates over the following three years are as follows: 1R1 = 2.75%, E(2r1) = 3.55%,

Suppose that the current 1-year rate and expected 1-year T-bill rates over the following three years are as follows: 1R1 = 2.75%, E(2r1) = 3.55%, E(3r1) = 4.05% If the unbiased expectations theory is correct, what should the current long-term rates for 1-, 2-, and 3-year maturity Treasury securities?

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