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(₂r ₁) = 1.5%, E(₃r₁) = 8.6%, E(₄r₁) = 8.95%

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 3 decimal places. (e.g., 32.161))

Current

(Long-Term) Rates

One-year %

Two-year %

Three-year %

Four-year %