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Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4,

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Suppose that the current one-year rate (one-year spot 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 = 5%, El2r1) = 5.5%, E3r1) = 6.5%, 54r1) = 7.0% Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities? Multiple Choice 6.00 percent 6.75 percent o 6.33 percent 7.00 percent

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