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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 (1.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 (1.e., years 2, 3, and 4, respectively) are as follows: 1/1 = 0.3%, E(r q) 1.3%, E(31) = 9.7%, E(471) = 10.05% Using the unblased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. (Round your percentage answers to 3 decimal places. (e.g., 32.161)) One-year Two-year Three-year Four-year Current (Long-Term) Rates % % %
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