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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 1-year

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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 1-year interest rate expected one year from now, El2r)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Interest rate

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