Assume that one-year interest rates over the next five years are as follows: 4%, 6.5%, 7%, 8%, and 9%. Investors preferences for holding short-term bonds (liquidity premium) for one- to five-year bonds are as follows: 0%, 0.25%, 0.5%, 0.75%, and 1.25%. Based on this information, what is the interest rate on the five-year bond?

Group of answer choices:

a. 10.25%

b. 6.7%

c. 8.15%

d. 9.5%

e. None of the above.