Question: Given the following term structure and assuming the unbiased expectation theory holds, answer the following questions (round to the nearest .000001 or 6 decimals) Term

Given the following term structure and assuming the unbiased expectation theory holds, answer the following questions (round to the nearest .000001 or 6 decimals)

Term Structure of Treasury Securities

Year Yield %

1 5.2

2 5.4

3 5.5

4 6.3

5 6.6

6 6.8

7 6.5

What is the 3 year rate 2 years from today?

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