Question: The one - year T - Bill rates for the next four years are expected to be as follows: R 1 = 6 . 2

The one-year T-Bill rates for the next four years are expected to be as follows:
R1=6.25%E2R1=6.91%E3R1=7.18%E4R1=8.55%
Estimate the equilibrium rate in accordance to the unbiased expectations theory for 3-year spot
bonds. Show your answer to 5 decimals places. Please show your work-no points awarded without
showing the process for estimating this rate.
The one-year T-Bill rates for the next four years are expected

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