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Assume the following: three-year Treasury security rate to be 12 percent the expected one-year rate next year - E(2r1) - to be 8 percent the

Assume the following: three-year Treasury security rate to be 12 percent the expected one-year rate next year - E(2r1) - to be 8 percent the expected one year rate the following year - E(3r1) - to be 11.934 percent If the unbiased expectation theory of term structure of interest rates holds, what is the one-year Treasury security rate

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