Current rate for two-year treasury security

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Reference no: EM132007468

The current one-year T-bill rate is .40 percent and the expected one-year rate 12 months from now is 7.70 percent. According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security? (Do not round intermediate calculations. Round your answer to 2 decimal places.

Reference no: EM132007468

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