Question: Suppose that the current one year rate and expected one year interest rates over the following 3 years are: 1 R 1 = 6 %

Suppose that the current oneyear rate and expected oneyear interest rates over the following 3 years are: 1R1=6%, E(2r1)=7%, E(3r1)=7.5% and E(4r1)=7.85%
According to UET, what is the current rate four-year interest rate?
Group of answer choices
9.21%
7.085%
6.5%
6.83%

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