What Is the One Year Interest Rate One Year from Now

question 96

Multiple Choice

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

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