Current rate for four-year-maturity treasury securities

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Reference no: EM131863827

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: 1R1=4.60%, E(2r1) =5.60%, E(3r1) =6.10%, E(4r1)=6.45% Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities.

Reference no: EM131863827

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