You observe the following yield curve for Treasury securities:

Maturity Yield

1 Year 1.30%

2 Years 2.80%

3 Years 3.40%

4 Years 3.40%

5 Years 4.70%

Assume that the pure expectations hypothesis holds. What does the market expect will be

the yield on 4-year securities, 1 year from today?

5.55%

6.05%

5.05%

4.55%

4.05%