Question: Question 12 Question 1 2 points Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (ie. years 2,
Question 12 Question 1 2 points Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (ie. years 2, 3, and 4, respectively) areas follows: IRI = 1.22%, E(201) -4,06%, E(3:1) = 6.02%, E(4:1) = 7.52% Using the unbiased expectations theory, calculate the current (long-term) rates for four-year-maturity Treasury securities (Write your answer in percentage and round it to 2 decimal places) current rate for three-year maturity
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