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=6.60%, E(₂r₁) =7.10%, E(₃r₁) =8.10% E(₄r₁)=8.60% Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?

• 7.5970%

• 2.0840%

• 8.6000%

• 7.6000%