Three-year treasury securities

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One-year Treasury bills currently earn 2.35 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 2.85 percent and that two years from now, 1-year Treasury bill rates will increase to 3.25 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities?

Reference no: EM131351365

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