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The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.20 percent and the rate on 5-year Treasury securities is 2.15 percent.
The Wall Street Journalreports that the rate on 3-year Treasury securities is 1.20 percent and the rate on 5-year Treasury securities is 2.15 percent. According to the unbiased expectations theory, what does the market expect the 2-year Treasury rate to be three years from today,E(3r2)?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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