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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 are as follows: 11 =
Suppose that the current one-year rate (one-year spot rate) and expected one year T-bill rates over the following three years are as follows: 11 = 6%, (21) = 7%, (31) = 7.5%, (41) = 7.85% Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year maturity Treasury securities
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