Beth would like to invest a certain amount of money for three years and considers investing in a one-year bond that pays 5 percent and for one year. Beth would then like to buy a second one-year bond that is expected to pay the one-yearforward rateone year from now and finally a third one-year bond that is expected to pay the one-yearforward ratetwo years from now.

If the annualized interest rate on a three-year bond is 8 percent, the forward rate of a one-year security beginning two years from now is__ percent.