Final answer:
The calculated forward rate would be an unbiased estimate of the one year spot rate of interest if it is equal to the expected future spot rate.
Step-by-step explanation:
The calculated forward rate would be an unbiased estimate of the one year spot rate of interest under the condition that the forward rate is equal to the expected future spot rate. For example, if the forward rate for a one-year investment is 5% and the expected spot rate for one year is also 5%, then the calculated forward rate would be an unbiased estimate of the one year spot rate of interest. However, if the forward rate is higher or lower than the expected spot rate, then it would not be an unbiased estimate of the one year spot rate of interest.