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0 Assume the following rates are currently known by the yield curve: Current 1-year Treasury Bill rate (1R 1) = 8.3%; o Current 2-year Treasury

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0 Assume the following rates are currently known by the yield curve: Current 1-year Treasury Bill rate (1R 1) = 8.3%; o Current 2-year Treasury Note rate (1R 2) = 9.1%; Under the Unbiased Expectations Theory (UET) what must be the expected 1-year spot rate ( 2E 1) next year? Show clearly all work, carrying all calculations out to four (4) decimal places. Highlight in bold your answer. (5 pts)

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