Assume that the pure expectations theory of the term structure is correct. Todays term structure is 11.662% pa for a term of 1 year, 12.517% pa for a term of 2 years and 13.044% pa for a term of 3 years. You are asked to forecast next years interest rate for a term of 2 years. Your forecast is closest to:

Group of answer choices

A) 13.560% pa

B) 13.742% pa

C) 13.379% pa

D) 12.517% pa

E) 14.107% pa