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Assume that the pure expectations theory is correct and complete. If the forward rates over the second, third, fourth, and fifth periods are 5.9, 6.4,

Assume that the pure expectations theory is correct and complete. If the forward rates over the second, third, fourth, and fifth periods are 5.9, 6.4, 6.7 and 6.9% respectively, what is the markets consensus opinion as to the value of the one-period spot rate that will be in existence at date 2?

By definition is the one period spot rate d at date 2 equal to f3?

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