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Unbiased Expectations Theory Suppose That the Current One-Year Rate (One-Year

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Unbiased Expectations Theory Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: Unbiased Expectations Theory Suppose that the current one-year rate (one-year spot rate)  and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively)  are as follows:   Using the unbiased expectations theory, what is the current (long-term)  rate for four-year-maturity Treasury securities? A)  6.00% B)  6.33% C)  6.75% D)  7.00% Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?


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