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Question: You note the following yield curve in The Wall Street Journal. According to the unbiased expectations theory, what is the 1-year forward rate for the period beginning one year from today, 2f1? (Round your answer to 2 decimal places.)

Maturity Yield

One day 2.30 %

One year 5.80

Two years 6.80

Three years 9.30

Forward rate %

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