Unbiased Expectations Theory 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=6%,E(2r1)=7%,E(3r1)=7.5%,E(4r1)=7.85%