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=4.15%, E(2r1) =5.15%, E(3r1) =5.65%, E(4r1)=6.00% Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?

6.0000%

5.2352%

1.4670%

5.2375%