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Given the Term Structure below: 1 year = 3% 2 years = 4.2% 3 years = 5.3% 4 years = 6.9% 5 years = 7.3%
Given the Term Structure below:
1 year = 3%
2 years = 4.2%
3 years = 5.3%
4 years = 6.9%
5 years = 7.3%
Based on the expectations hypothesis, what does the market expect the 1 year rate in 4 year to be?
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