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The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.25%,4.80%, and 5.00%. The current one-year interest rate is

The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.25%,4.80%, and 5.00%. The current one-year interest rate is 4.20%. Estimate the annual four-year interest rate using the Expectations theory.

Interest rate: _______%

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