A recent edition of The Wall Street Journal reported interest rates of 3.10 percent, 3.50 percent, 3.75 percent, and 3.95 percent for three-year, four-year, five-year, and six-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, what are the expected one-year rates for year 6?
Multiple Choice
a. 3.575 percent
b. 3.95 percent
c. 4.96 percent
d. 5.33 percent