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

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Suppose that the current 1-year rate (1-year spot rate) andexpected 1-year T-bill rates over the following three years (i.e.,years 2, 3, and 4, respectively) are as follows:
₁R₁ =1%, E(₂r₁) = 4.25%,E(₃r₁) = 4.75%,E(₄r₁) = 6.25%
Using the unbiased expectations theory, calculate the current(longterm) rates for 1-, 2-, 3-, and 4-year-maturity Treasurysecurities. Plot the resulting yield curve. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)

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Suppose that the current 1-year rate (1-year spot rate) andexpected 1-year T-bill rates over the following three years (i.e.,years 2, 3, and 4, respectively) are as follows: 1R1 =1%, E(2r1) = 4.25%,E(3r1) = 4.75%,E(4r1) = 6.25%Using the unbiased expectations theory, calculate the current(longterm) rates for 1-, 2-, 3-, and 4-year-maturity Treasurysecurities. Plot the resulting yield curve. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)