Question: Assume the current interest rate on a one - year Treasury bond ( R 1 1 ) ( R 1 1 ) is 5 .
Assume the current interest rate on a oneyear Treasury bond RR is percent, the current rate on a twoyear Treasury bond RR is percent, and the current rate on a threeyear Treasury bond RR is percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the oneyear interest rate expected on Treasury bills during year ff
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