What is the one-year interest rate expected on t-bills

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Question: Assume the current interest rate on a one-year Treasury bond (1R1) is 1.37 percent, the current rate on a two-year Treasury bond (1R2) is 1.53 percent, and the current rate on a three-year Treasury bond (1R3) is 1.64 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the one-year interest rate expected on T-bills during year 3 (E(3r1) or 3f1)?

Reference no: EM131936746

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