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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
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: 1R1 = 2.15%, E(2rl) =3.61%, E(3rl) = 5.57%, E(4r1) = 7.47% Using the unbiased expectations theory, calculate the current (long-term) rates for four-year-maturity Treasury securities
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