Recall that on a one-year Treasury security the yield is 5.3800% and 7.2630% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.35%. What is the markets estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

8.4683%

7.1981%

10.7547%

9.6539%