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=6.25%, E(₂r₁) =6.75%, E(₃r₁) =7.75% E(₄r₁)=8.25%

Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?

7.2470%

8.2500%

2.0020%

7.2500%