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Unbiased Expectations Theory One-year Treasury bills currently earn 5.45 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.60
Unbiased Expectations Theory One-year Treasury bills currently earn 5.45 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.60 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?
5.4500%
11.0500%
5.6000%
5.5250%
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