9) You observe that a one-year riskless investment offers an interest rate of 8 percent, and a two-year riskless investment offers a rate of return equal to 9 percent. Both investments are zero coupon bonds (that is, there are only two relevant cash flows--a single cash outflow when the bond is purchased and an inflow when the bond matures). According to the expectations theory what is the expected one-year rate in the second year?

A) 10.01%

B) 11.00%

C) 1.00%

D) 0.19%

E) none of the above