According to the unbiased expectations theory of the term


A recent edition of The Wall Street Journal reported interest rates of 4.25 percent, 4.60 percent, 4.98 percent, and 5.25 percent for three year, four year, five year, and six year Treasury notes, respectively. According to the unbiased expectations theory of the term structure of interest rates, what are the expected one year rates during years 4, 5, and 6?

Year 4: ___________%

Year 5: ___________%

Year 6: ___________%

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Financial Management: According to the unbiased expectations theory of the term
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