Suppose we observe the following rates: ₁R₁ = 7%, 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)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Problem 6-15 Unbiased Expectations Theory (LG6-7) Suppose we observe the following rates: 1 R1 = 7%, 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(211)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Interest rate % Problem 6-25 Unbiased Expectations Theory (LG6-7) Suppose we observe the 3-year Treasury security rate (1R3 ) to be 9 percent, the expected 1-year rate next yearE(281)to be 4 percent, and the expected 1-year rate the following yearE(371)to be 6 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 %