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The Wall Street Journal reports that the rate on 6-year Treasury securities is 1.60 percent and the rate on 7-year Treasury securities is 2.15 percent.
The Wall Street Journal reports that the rate on 6-year Treasury securities is 1.60 percent and the rate on 7-year Treasury securities is 2.15 percent. According to the unbiased expectations theories, what does the market expect the 1-year Treasury rate to be six years from today, E(7r1)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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