What is current rate for treasury securities

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Question - Unbiased expectation theory suppose that the current one year rate (one year spot rate) and expected one year T-bill rates over the following three years (i.e., years 2, 3 , and 4, respectively are as follows: 1r1=6.05%, E(2r1)=6.55% E (3r1)=7.55% E(4r1)=8.05%. Using the unbiased expectations theory, what is the current (long term) rate for four-year-maturity Treasury securities?

Reference no: EM132929342

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