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  3. suppose we observe the following rates: 1r1 = 5.4%

Suppose we observe the following rates: 1R1 = 5.4%, 1R2 = 7.6%. If the unbiased...

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Accounting

Suppose we observe the following rates: 1R1 = 5.4%, 1R2 = 7.6%. If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year interest rate expected one year from now, E(2r1)? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

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