What should the current rate be on treasury securities

Reference no: EM132213290

Question: One-year Treasury bills currently earn 2.30 percent. You expected that one year from now, 1-year Treasury bill rates will increase to 2.80 percent and that two years from now, 1-year Treasury bill rates will increase to 3.20 percent. If the unbiased expectations theory is correct, what should the current rate be on 3-year Treasury securities?

Reference no: EM132213290

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