The Wall Street Journal reports that the rate on four-year Treasury securities is 5.60 percent and the

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The Wall Street Journal reports that the rate on four-year Treasury securities is 5.60 percent and the rate on five-year Treasury securities is 6.15 percent. According to the unbiased expectations theory, what does the market expect the one-year Treasury rate to be four years from today, E(5r1)?

(LG 2-7)

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