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Consider the following $1.1300 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 5.3% B 2 6.3 C 3 6.8 D

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Consider the following $1.1300 par value zero-coupon bonds: Bond Years until Maturity Yield to Maturity A 1 5.3% B 2 6.3 C 3 6.8 D 4 7.3 According to the expectations hypothesis. what is the market's 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 1%

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