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The following table gives annual interest rates for the given maturities. Assume that the pure expectations hypothesis holds. 1 Year 1.88% 2 Year 2.19% 3

The following table gives annual interest rates for the given maturities. Assume that the pure expectations hypothesis holds.

1 Year 1.88%
2 Year 2.19%
3 Year 2.33%
4 Year 2.59%
5 Year 2.77%

What is the 1 year rate in 2 years?

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