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Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the...

Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 1R1 = 2.62%, E(2r1) = 3.90%, E(3r1) = 4.40%, E(4r1) = 5.90% Using the unbiased expectations theory, calculate the current (long-term) rates for 1-, 2-, 3-, and 4-year-maturity Treasury securities. Plot the resulting yield curve. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE2 v U ) và 4x = 03:59 ENG 25-01-2020 18 EM452 EF EG EH EL EJEKEL EM EN EO - 452 453 454 455 456 457 458 459 460 461 462 463 4

e . W 2 v U ) và 4x = 03:59 ENG 25-01-2020 18 EG EH EI EI EK EL EM EN EO EΡ YEAR 4.50% EP494 2 473 474 475 476 477 478 479 48

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