Suppose the spot rates are: 1-Year Rate: 4%, 2-Year Rate: 5.5%, 3-Year Rate 6%, 4-Year Rate: 6.5%, 5-Year Rate: 7%, 6-Year Rate: 9% and 7-Year Rate: 10.5% What is the one year rate five years from now?
| a. |
19.57% |
| b. |
18.62% |
| c. |
15.80% |
| d. |
14.65% |
| e. |
12.67% |