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23) A 2-year interest rate is 7% and a 1-year forward rate 1 year from now is 8%. According to the expectations theory, what is

23) A 2-year interest rate is 7% and a 1-year forward rate 1 year from now is 8%. According to the expectations theory, what is the current 1-year rate?

6.0%
6.5%
7.0%
8.0%

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