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Suppose we observe the following rates: ? 1 R 1 = 5 % , ? 1 R 2 = 9 % . If the unbiased

Suppose we observe the following rates: ?1R1=5%,?1R2=9%. If
the unbiased expectations theory of the term structure of
interest rates holds, what is the 1-year interest rate expected
one year from now, E(2r1)?
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