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Answer the following question

Suppose we observe the following rates: 1R1 = 10%, 1R2 = 12%.

If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(2r1)?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92853461

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