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Suppose the interest rate on a 1-year T Bill is 5.00 percent and that on a 2-year T bond is 7.5 percent. According to the

Suppose the interest rate on a 1-year T Bill is 5.00 percent and that on a 2-year T bond is 7.5 percent. According to the (unbiased/pure) expectations theory, what does the market forecast 1-year rates to be 1 year from now?

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