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Two-year Treasury bills are currently yielding 0.674%, and the rate on three-year Treasury notes is 0.973%. The one-year interest rate expected in one year is

  1. Two-year Treasury bills are currently yielding 0.674%, and the rate on three-year Treasury notes is 0.973%. The one-year interest rate expected in one year is 1.00%. According to the unbiased expectation theory, what is expected one-year rate during year 3?

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