Current rate be on threre-year treasury securities

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Reference no: EM131539583

One-year Treasury bills currently earn 3.00 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.50 percent and that two years from now, 1-year Treasury bill rates will increase to 3.90 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current rate %

Reference no: EM131539583

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