The Wall Street Journal Reports That the Current Rate on Five-Year

The Wall Street Journal reports that the current rate on five-year Treasury bonds is 6.45 percent and on 10-year Treasury bonds is 7.75 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a five-year Treasury bond purchased five years from today, E(₅r₅) .

A) 7.25 percent
B) 8.12 percent
C) 9.07 percent
D) 10.16 percent