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Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)? A.

Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)?

A. 1.63%

B. 1.70%

C. 7.93%

D. 9.68%

E. 11.47%

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