The market expect the 1-year treasury rate to be six years

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Reference no: EM132051467

The Wall Street Journal reports that the rate on 6-year Treasury securities is 1.30 percent and the rate on 7-year Treasury securities is 1.85 percent.

According to the unbiased expectations theories, what does the market expect the 1-year Treasury rate to be six years from today, E(7r1)?

Reference no: EM132051467

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