Question $19$

$14$ pts

Assume that the Pure Expectation Theory determines interest rates in the markets. Today's market rates for different maturities are as follows:

$1$ year $=3\%$

$2$ years $=4\mathrm{.}6\%$

$3$ years $=5\mathrm{.}6\%$

$4$ years $=6\mathrm{.}8\%$

$5$ years $=7\mathrm{.}3\%$

What is the implied $1$ year interest rate for investing in $4$ years?

Enter your answer as a percentage, without the percentage sign $(\text{'}\%\text{'}),$ and rounded to $1$ decimal. For example, if your answer is $0\mathrm{.}12345,$ this is equivalent to $12\mathrm{.}345\%,$ so just enter $12\mathrm{.}4$