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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
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=6%,E(2r1)=7%,E(3r1)=7.5%,E(4r1)=7.85% 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. (e.g., 32.16))
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