Arecent edition of the wall street journal reported interest rates of 2.25 percent, 2.60 percent, 2.98 percent, and 3.25 percent for three-year, four-year, five-year, and six-year treasury note yields, 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?

r4 = 3.66 %

r5 = 4.51 %

r6 = 4.61 %

Explanation:

given data

interest rates = 2.25 %

interest rates =  2.60 %

interest rates =  2.98 %

interest rates =  3.25 %

time = 3 year

time = 4 year

time = 5 year

time = 6 year

to find out

expected one-year rates during years 4, 5, and 6

solution

we will apply here formula of unbiased expectations theory for expected interest rate that is

r =     ..................................1

here r is expected one yea rate of interest

t is denoted year

and R is reported rate of interest

so put here value for 4 year

r4 =  

r4 =  

r4 = 0.0366

r4 = 3.66 %

and now put value for year 5  in equation 1

r5 =  

r5 =  

r5 = 0.0451

r5 = 4.51 %

and

now put value for year 6  in equation 1

r6=  

r6 =  

r6 = 0.0461

r6 = 4.61 %

the following men who did not in the unification of italy were.

a) giuseppe mazzini

c) alexander ll

the other two men were camilo cavour and giuseppe garibaldi they the unification of italy by yielding territories in the italian unification. in 1861 italy was declared a united-nation state under the sardinian king victor immanuel ll.