Final answer:
According to the unbiased expectations theory, the 1-year forward rate for the period beginning one year from today (2f1) can be calculated based on the current spot rate and the expected rate of change in interest rates over the next year.
Step-by-step explanation:
The 1-year forward rate for the period beginning one year from today, known as 2f1 according to the unbiased expectations theory, can be calculated based on the assumption that investors have no preference for holding short-term or long-term bonds. It is equal to the current spot rate plus the expected rate of change in interest rates over the next year.
For example, if the current spot rate is 2% and the expected rate of change in interest rates over the next year is 0.5%, then the 1-year forward rate (2f1) would be 2% + 0.5% = 2.5%.