What are the expected one-year rates for years

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Reference no: EM131967853

A recent edition of The Wall Street Journal reported interest rates of 7.5 percent, 7.85 percent, 8.15 percent, and 8.25 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Reference no: EM131967853

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