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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

image text in transcribed 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=0.5%,E(2r1)=1.5%,E(3r1)=7.2%,E(44r1)=7.55% Using the unbiased 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))

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