An analyst is evaluating her bond portfolio. One of her zero coupon bonds will mature in 15 years and the spot rate is 7%. The analyst expects that there would be two equally possible scenarios one year from today. In the first scenario the spot rate would be 5% and in the second scenario the spot rate would be 8%. Please help her to estimate the expected one year return (in percentage terms) of the bond. Note that all bonds are semi-annual.

a.)	The answer is 17.09%
b.)	The answer is 10.18%
c.)	The answer is 16.64%
d.)	The answer is 9.85%