Question: 3. Given the Term Structure below: 1 year = 3.6% 2 years = 4.7% 3 years = 6% 4 years = 6.6% 5 years =

Given the Term Structure below:

1 year = 3.6%

2 years = 4.7%

3 years = 6%

4 years = 6.6%

5 years = 7.5%

Based on the expectations hypothesis, what does the market expect the 1 year rate in 4 year to be?

Enter your answer as a percentage, without the percentage sign ('%'), and rounded to 1 decimal. Example: if your answer is 0.12345, that's equivalent to 12.3%, so enter 12.3

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