1. Suppose we observe the three-year Treasury security rate (1R3) to be 12 percent, the expected one-year rate next yearE(2r1)-to be 8 percent, and the expected one-year rate the following year-E( 3r1)-to be 10 percent. If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year Treasury security rate? ( LG 2-7)