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Assume the current interest rate on a 1 - year Treasury bond ( 1 R 1 ) is 6 . 0 0 percent, the current

Assume the current interest rate on a 1-year Treasury bond
(1R1) is 6.00 percent, the current rate on a 2-year Treasury
bond (1R2) is 6.75 percent, and the current rate on a 3-year
Treasury bond (1R3) is 8.00 percent. If the unbiased
expectations theory of the term structure of interest rates is
correct, what is the 1-year forward rate expected on Treasury
bills during year 3,?3f1?
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