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Unblased expectations theory: Suppose that the current one-year rate (one-year spot rate) is 2% and expected one-year T-bill rates over the following three years (1.e.,

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Unblased expectations theory: Suppose that the current one-year rate (one-year spot rate) is 2% and expected one-year T-bill rates over the following three years (1.e., years 2, 3, and 4, respectively) are as follows: 3.5%, 4.5% and 5.3%. Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-three-and four-year-maturlty Treasury securities. Plot the resulting yleld curve on a graph

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