Question: Given the Term Structure below: 1 year = 3.5% 2 years = 4.4% 3 years = 5.4% 4 years = 6.6% 5 years = 7.5%

Given the Term Structure below:

1 year = 3.5%

2 years = 4.4%

3 years = 5.4%

4 years = 6.6%

5 years = 7.5%

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

Enter your answer as a percentage, without the percentage sign ('%'), and rounded to 1 decimal. Example: if your answer is 0.12356, that's equivalent to 12.4%, so enter 12.4

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