If the Spot Interest Rate on a Prime-Rated One-Month CD

Multiple Choice

If the spot interest rate on a prime-rated one-month CD is 6 percent today and the market rate on a two-month maturity prime-rated CD is 7 percent today, the implied forward rate on a one-month CD to be delivered one month from today is

A) 9 percent.
B) 11 percent.
C) 18 percent.
D) 10 percent.
E) 8 percent.