A bond pays annual coupons at a rate of 5.5%. Its face value is $1000. The bond has exactly 3 years until it matures. The price of the bond is 1040.31. If the two - and three year spot rates in this economy are 5% and 4%, then the one year spot rate is closest to? Select one: a. 1.05% b. 5.5% c. 4.48% d. 4.70%