Consider a Bank That Has a Customer Who Deposits $10,000

Consider a bank that has a customer who deposits $10,000 into a 12-month CD that pays 2.5% interest and at the end of the 12 months the customer rolls the funds over into another 12-month CD and continues the rolling every 12 months. Further, suppose the bank uses these funds to make an auto loan for which the bank charges 4% interest. In this situation, the interest rate spread is

A) 0.5%.
B) 1.0%.
C) 1.5%.
D) 2.0%.