1. The one-year forward rate for year 2 (i.e., the one-year effective rate during year 2) is 4%. The four- year spot rate is 10%. The expected spot rate at the end of year two on a zero-coupon bond maturing at the end of year 4 is 7%. Determine the one-year spot rate. Select one: a. 26.65% b. 31.57% c. 22.96% d. 10.09% e. 18.23%