Suppose we observe the three year Treasury security rate ( 1 R 3 ) to be 5 6 percent, the expected one year rate next year E ( 2 r 1 )to be 6 2 percent, and the expected one year rate the following year E ( 3 r 1 )to be 6 8 percent If the unbiased expectations theory of the term structure of interest rates holds, what is the one year Treasury security rate Show work please

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Question: Suppose we observe the three-year Treasury security rate ( 1 R 3 ) to be 5.6 percent, the expected one-year rate next year E (

Suppose we observe the three-year Treasury security rate (₁R₃) to be 5.6 percent, the expected one-year rate next yearE(₂r₁)to be 6.2 percent, and the expected one-year rate the following yearE(₃r₁)to be 6.8 percent. If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year Treasury security rate? Show work please!

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