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Suppose the interest rate on a 1 - year T - bond is 5 . 0 0 % and that on a 2 - year

Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 7.30%. Assuming the pure expectations theory is correct, what is the market's forecast for 1-year rates 1 year from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places.
8.78%
9.65%
8.01%
8.20%
9.26%
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