What Is the One-Year Interest Rate One Year from Now

question 77

Multiple Choice

What is the one-year interest rate one year from now if the current one-year interest rate is 2.75% and the two-year interest rate is 3.21%? Assume the rates are effective annual rates.

• A)3.62%
• B)3.67%
• C)3.71%
• D)3.75%
• E)3.88%

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