Bond

A

B

C

$0$

E

Years to Maturity

$1$

$2$

$3$

$4$

$5$

Yield to Maturity

$6\mathrm{.}00\%$

$7\mathrm{.}50\%$

$8\mathrm{.}00\%$

$8\mathrm{.}50\%$

$10\mathrm{.}25\%$

The expected $1-$year interest rate $2$ years from now should be

$7\%$

A $K$

$9\%$

$10\%$