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The Wall Street Journal reports that the rate on 5-year Treasury securities is 1.90 percent and the rate on 7-year Treasury securities is 2.85 percent.
The Wall Street Journal reports that the rate on 5-year Treasury securities is 1.90 percent and the rate on 7-year Treasury securities is 2.85 percent. According to the unbiased expectations hypothesis, what does the market expect the 2-year Treasury rate to be five years from today, E(5r2)? (Do not round intermediate calculations and round your answer to 2 decimal places.)
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