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15. If you have a two-year security compared to two (one-year securities) and you have the annualized interest rate on one-year security equals 5%, the

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15. If you have a two-year security compared to two (one-year securities) and you have the annualized interest rate on one-year security equals 5%, the annualized interest rate on two-year security equals 7%, Liquidity premium on a two-year security equal 0.3%. The one year forward rate according to the given information is: A. 7.53% B. 7.82% C. 8.34% D. 8.75%

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