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A recent edition of The Wall Street Journal reported interest rates of 2.11 percent, 2.87 percent, 3.14 percent, and 4 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory of the term structure of interest rates, what is the expected one-year rate during year 6 in percent?

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Financial Management, Finance

Category:- Financial Management
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