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Suppose we observe the following rates: 1R1 = 4.2%, 1R2 = 6.5%.If the unbiased expectations theory of the term structure ofinterest rates holds, what is

Suppose we observe the following rates: 1R1 = 4.2%, 1R2 = 6.5%.If the unbiased expectations theory of the term structure ofinterest rates holds, what is the one-year interest rate expectedone year 1 answer

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