Question: If 1-year spot rate is 5%, 2-year rate one year from now is expected to be 5.75%, the unbiased expectation theory of interest rates would

If 1-year spot rate is 5%, 2-year rate one year from now is expected to be 5.75%, the unbiased expectation theory of interest rates would indicate current 3-year spot rate should be closest to: A) 17.42% B) 11.04% C) 5.50% D) 5.38%

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