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Suppose we observe the following rates: IR1 E(211) E(3rl) E(4r1) E(Srl) E( 61) 0.85% 3.02% 3.79% 4.98% 5.59% 6.49% a) If the unbiased expectation theory

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Suppose we observe the following rates: IR1 E(211) E(3rl) E(4r1) E(Srl) E( 61) 0.85% 3.02% 3.79% 4.98% 5.59% 6.49% a) If the unbiased expectation theory of term structure of interest rates holds, Compute the following rates: IRI 0.85% 1R2 1R3 1R4 1R5 1R6 b) Graph the Yield Curve C) Comment on the graph

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