Kala enters into a two-year interest rate swap with a level notional amount of 1,000. She exchanges variable interest payments for fixed interest payments every six months. The t-year spot rates at inception are:

t	s1
0.5	1.1%
1	1.25%
1.5	1.55%
2	2%

Calculate the semiannual swap rate that Kala will receive.

a). 0.14%

b). 0.99%

c). 1.49%

d). 1.98%

e). 2.21%