Question: Current spot rates are given in the table below. Based on pure expectation theory, what price should a 12-month bank bill with face value of

Current spot rates are given in the table below. Based on pure expectation theory, what price should a 12-month bank bill with face value of $10,000 be sold for in 2 years' time?

Term (years)	Spot Interest rate (% p.a.)
1	4.0
2	5.0
3	5.8
4	6.4

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