Use the table below for the next 3 problems.

1) What dies the market expect will be the interest rate on a 3 year security, 2 years from now

1 year 5.0%

2 year 5.2%

3 year 5.3%

4 year 5.5%

5 year 6.0%

A) 4.87%

B) 5.48%

C) 6.54%

D) 7.06%

E) 8.29%