What is the one year interest rate one year from now if the current one-year interest rate is 2.55 percent and the two-year interest rate is 3.15 percent? Assume the rates are effective annual rates.
A) 3.62 percent
B) 3.67 percent
C) 3.71 percent
D) 3.75 percent
E) 3.88 percent
Correct Answer:
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