Question: Given the Term Structure below: 1 year = 4% 2 years = 4.3% 3 years = 5.8% 4 years = 6.3% 5 years = 7.3%

Given the Term Structure below:

1 year = 4%

2 years = 4.3%

3 years = 5.8%

4 years = 6.3%

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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