Question: Given the Term Structure below: 1 year = 3.6% 2 years = 4.8% 3 years = 5.9% 4 years = 6.8% 5 years = 7.3%
Given the Term Structure below: 1 year = 3.6% 2 years = 4.8% 3 years = 5.9% 4 years = 6.8% 5 years = 7.3% 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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