The Wall Street Journal Reports That the Current Rate on 5-Year

The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 6.50 percent and on 10-year Treasury bonds is 6.75 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 5-year Treasury bond purchased five years from today, E(₅r₁) .

A) 6.625 percent
B) 6.75 percent
C) 7.00 percent
D) 7.58 percent