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 2.85 percent and on 10-year Treasury bonds is 4.35 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) 3.60 percent
B) 5.85 percent
C) 7.20 percent
D) 8.28 percent