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Question : Question
The current one-year T-bill rate .43 : 5636

**Question**

The current one-year T-bill rate is .43 percent and the expected one-year rate 12 months from now is 1.40 percent. According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security? **(Do not round intermediate calculations. Round your answer to 2 decimal places).**

**Current Rate ______ %**

**Please explain it carefully**

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Solution
5 (1 Ratings )

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