Multiple Choice
Unbiased Expectations 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: 
Using the unbiased expectations theory, what is the current (long-term) rate for four-year-maturity Treasury securities?
A) 6.00%
B) 6.33%
C) 6.75%
D) 7.00%
Correct Answer:
Verified
Correct Answer:
Verified
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