Calculate the current interest rates on two-year

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Reference no: EM131870163

Suppose that the interest rate on a one-year Trea- sury bill is currently 1% and that investors expect that the interest rates on one-year Treasury bills over the next three years will be 296, 396, and 296. Use the expectations theory to calculate the current interest rates on two-year, three-year, and four-year Treasury notes.

Reference no: EM131870163

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