The maturities and yields of three zero-coupon bonds are as follows:

Maturity YTM

1 4%

2 5%

3 6%

Next year, you expect the yields on zero-coupon bonds to be as follows:

Maturity YTM

1 5%

2 6%

3 7%

What is the market's expectation of the rate of return on a 3-year zero-coupon bond over the coming year, assuming the expectations hypothesis holds? Please express your answer in percent rounded to the nearest basis point.