Question: Suppose the the current one year rete (one year spot rate) and expected one year T-bill rates over the following three years te, years 2.3,
Suppose the the current one year rete (one year spot rate) and expected one year T-bill rates over the following three years te, years 2.3, and 4, respectively are as follows: R = 5 percent. E=6 percent. E= 75 percent E4685 percent Using the unbiased expectations theory, calculate the current fong term rates for one two three and four year-maturity Treasury securities O 5.00 percent 5.50 percent 610 percent 6 23 percent 0 5.00 percent 5.50 percent. 6.16 percent 6 33 percent 500 percent 5.25 percent 616 percent. 649 percent O 500 percent. 5.25 percent 610 percent 6 27 percent
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