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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 (l.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 (l.e., years 2,3 , and 4 , respectively) are as follows: 1R1=5percent,E(2r1)=7percent,E(3r1)=7.5percentE(4r1)=7.85percent Using the unbiased expectations theory, calculate the current (long-term) rates for one-year and two-year-maturity Treasury securities

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