Suppose we observe the 3-year Treasury security rate (₁R₃) to be 9 percent, the expected 1-year rate next yearE(₂r₁)to be 6 percent, and the expected 1-year rate the following yearE(₃r₁)to be 7 percent. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year Treasury security rate, ₁R₁? (Round your answer to 2 decimal places.)

Treasury security rate

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