The Wall Street Journal Reports That the Current Rate on 10-Year

The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 3.25 percent and on 20-year Treasury bonds is 5.50 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 10-year Treasury bond purchased 10 years from today, E(₁₀r₁₀) .

A) 2.25 percent
B) 4.38 percent
C) 7.80 percent
D) 8.75 percent