What are expected one-year rates

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A recent edition of The Wall Street Journal reported interest rates of 2.85 percent, 3.20 percent, 3.58 percent, and 3.85 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory of the term structure of interest rates, what are the expected one-year rates during years 4, 5, and 6? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Reference no: EM131955587

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