11.The yield to maturity on one-year, zero-coupon bonds is 5%. The yield to maturity on two-

year, zero-coupon bonds is 6%. The yield to maturity on three-year, zero-coupon bonds is 6.5%.

The yield to maturity on four-year, zero-coupon bonds is 7%. According to the expectations

hypothesis, what is the markets expectation of the one year interest rate two years from now?

A) 6.00%

B) 7.01%

C) 7.51%

D) 8.51%