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Unbiased Expectations Theory One-year Treasury bills currently earn 5.60 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.85

Unbiased Expectations Theory One-year Treasury bills currently earn 5.60 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.85 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?

5.600%

11.450%

5.725%

5.850%

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