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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

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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 , respectively) are as follows: 1r1=5 percent, E(2r1)=5.5 percent, E(3r1)=7.5 percent E(4r1)=6.75 percent Using expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. Note that xry is the interest rate that applies from time x for x periods, and x= 1 is the present

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