What does market expect the one-year treasury rate

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Reference no: EM131914203

The current rates on Treasury securities are as follows: 1R1 = 4.33%, 1R2 = 5.25%, 1R3 = 5.55%, and 1R4 = 6.01%. If the unbiased expectations theory holds,

a) What does the market expect the one-year Treasury rate to be three years from now?

b) What does the market expect the one-year Treasury rate to be during year 3?

Please show me step by step how you got the answer.

Reference no: EM131914203

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