Suppose we observe the 3-year Treasury security rate ( 1 R 3 ) to be 8 percent, the expected 1-year rate next year— E ( 2 r 1 )—to be 4 percent, and the expected one-year rate the following year— E (...

Suppose we observe the 3-year Treasury security rate (₁
R
₃) to be 8 percent, the expected 1-year rate next year—E(₂
r
₁)—to be 4 percent, and the expected one-year rate the following year—E(₃
r
₁)—to be 6 percent. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year Treasury security rate,₁
R
₁? (Round your answer to 2 decimal places.)