Suppose the spot rates are 1-year rate 4 2-year rate 55, Ask an Expert

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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%

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