Question: Suppose we observe the three-year Treasury security rate ( 1 R 3 ) to be 4.3 percent, the expected one-year rate next year E (

Suppose we observe the three-year Treasury security rate (₁R₃) to be 4.3 percent, the expected one-year rate next yearE(₂r₁)to be 4.8 percent, and the expected one-year rate the following yearE(₃r₁)to be 5.6 percent. If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year Treasury security rate? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

one-year Treasury security rate: _______%

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