Consider the following $1,000 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 4.9% B 2 5.9 C 3 6.4 D 4 6.9 According to the expectations hypothesis, what is the markets expectation of the one-year interest rate three years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Interest rate %