Question: It is 2 0 2 4 . You walk to the Treasury and see the following options for Treasury bonds: 1 year bond: 5 %

It is 2024. You walk to the Treasury and see the following options for Treasury bonds:
1 year bond: 5% interest rate
2 year bond: 9% interest rate
3 year bond: 10% interest rate
According to the expectations hypothesis, what is the 1-year interest rate expected to be next year?

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