Assume the current interest rate on a 1-year Treasury

bond (1R1) is 1.54 percent, the current rate on a 2 year

treasury bond (1R2) is 1.70 percent and the current rate

on a 3 year treasury bond (1R3) is 1.81 percent. If the

biased expectations theory of the term structure of

interest rates is correct, what is the 1 year foward rate

expected on treasury bills during year 3, 3f1?