What does the market expect one-year treasury rate

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The Wall Street Journal reports that the rate on 9-year Treasury securities is 1.30 percent and the rate on 10-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 nine years from today, E(10r1)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131911750

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