The Wall Street Journal reports that the rate on 7-year Treasury securities is 1.40 percent and the rate on 8-year Treasury securities is 1.95 percent. According to the unbiased expectations theories, what does the market expect the 1-year Treasury rate to be seven years from today, E(₈r₁)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Treasury rate

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