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 = 4.0%, E(2R1) = 2.5%, E(3R1) = 10.0%, E(4R1) = 12.0%,

Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturityTreasury securities (1R4)?

Show work please.