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11. Suppose we observe the three-year Treasury security rate (1R3) to be 12 percent, the expected one-year rate next yearE(211)to be 8 percent, and the

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11. Suppose we observe the three-year Treasury security rate (1R3) to be 12 percent, the expected one-year rate next yearE(211)to be 8 percent, and the expected one-year rate the following year-E(371)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

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