The Following Information Is About Current Spot Rates for Second

Multiple Choice

The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs) . All interest rates are fixed and paid annually $$\begin{array} { | c | c | } \hline \text { Assets } & \text { Liabilities } \\\hline \text { 1-year loan rate: } 7.50 \text { percent } & \text { 1-year CD rate: } 6.50 \text { percent } \\\hline \text { 2-year loan rate: } 8.15 \text { percent } & \text { 2-year CD rate: } 6.65 \text { percent } \\\hline\end{array}$$
-What is the duration of the two-year loan (per $100 face value) if it is selling at par?

A) 2.00 years
B) 1.92 years
C) 1.96 years
D) 1.00 year
E) 0.91 years