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A recent edition of the Wall Street Journal reported interest rates of 1.25 percent, 1.60 percent, 1.98 percent and 2.25 percent for 3-,4- ,5- and
A recent edition of the Wall Street Journal reported interest rates of 1.25 percent, 1.60 percent, 1.98 percent and 2.25 percent for 3-,4- ,5- and 6-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, what are the expected one-year forward rates for years 4.5, and 6?
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