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Suppose that the current one-year rate and expected one-year T-bill rates over the following three...

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Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (i.e., year 2 , 3, and 4, respectively) are as follows: 1R1=3%,E(2r1)=3.5%,E(3r1)=4%,E(4r1)=4.5%. Using the unbiased expectations theory, calculate the current rate for three-year Treasury securities. (1.5 points) A) 2.9% B) 3.2% C) 3.5% D) 3.8%

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