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Suppose we observe the following rates: 1 R 1 = 8%, 1 R 2 = 10%. If the unbiased expectations theory of the term structure

Suppose we observe the following rates: ₁R₁ = 8%, ₁R₂ = 10%. If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year interest rate expected one year from now, E(₂r₁)?

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