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Problem 3-27 Term-structure theories The one-year spot interest rate is r1=6.4%, and the two-year rate is r2=7.4%. If the expectations theory is correct, what is

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Problem 3-27 Term-structure theories The one-year spot interest rate is r1=6.4%, and the two-year rate is r2=7.4%. If the expectations theory is correct, what is the xpected one-year interest rate in one year's time? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places

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