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Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three

years (i.e., years 2, 3, and 4, respectively) are as follows:


1R1 = 3.22%, E(2r1) = 4.65%, E(3r1) = 5.15%, E(4r1) = 6.65%


Using the unbiased expectations theory, calculate the current (long-term) rates for 1-, 2-, 3-, and 4-year-maturity Treasury securities. Plot the resulting yield curve

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