Suppose the current rate on a 5-year treasury is 45 the


Suppose the current rate on a 5-year Treasury is 4.5%, the current rate on a 4-year Treasury is 4.25%, and the one-year rate is 2.84%.  Using the unbiased expectations theory, what is the expected one-year rate during year 5, E(5r1)?

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Financial Management: Suppose the current rate on a 5-year treasury is 45 the
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