What is the one year interest rate one year from now if the current one-year interest rate is 2.87 percent and the two-year interest rate is 3.11 percent? Assume the rates are effective annual rates.
A) 3.22 percent
B) 3.27 percent
C) 3.31 percent
D) 3.35 percent
E) 3.38 percent
Correct Answer:
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