Q.4013 Under Model 1 of short-term interest rates, the current value of the short-term rate is 5.26%, that volatility equals 115 basis points per year, and that the time interval under consideration is one month or $\frac{1}{12}$ years. Mathematically, $r_0 = 5.26\%$; $\sigma = 1.15\%$; and $dt = \frac{1}{12}$. A month passes and the random variable $dw$, with its zero mean and its standard deviation of $\sqrt{\frac{1}{12}}$ or 0.2887, happens to take on a value of 0.25. Determine the short-term rate after one month.