Suppose the Current Seven-Year Rate Is 8 Percent and the Current

Multiple Choice

Suppose the current seven-year rate is 8 percent and the current six-year rate is 6 percent. What is the one year forward rate for six years?

A) 16.33 percent
B) 18.22 percent
C) 20.82 percent
D) 14.65 percent
E) 15.14 percent