Based on Exhibits 5 and 6, the value of the lower one- period forward rate is closest to:

a. 3.5122%

b. 4.8037%

c. 3.54%

\begin{tabular}{|lcc} \hline Exhibit 5 & Selected Data for a Binomial Interest Rate Tree \\ \hline Maturity & Par Rate & Spot Rate \\ \hline 1 & 2.5000% & 2.5000% \\ 2 & 3.5000% & 3.5177% \\ \hline \end{tabular} \begin{tabular}{|lcc} \hline Exhibit 5 & Selected Data for a Binomial Interest Rate Tree \\ \hline Maturity & Par Rate & Spot Rate \\ \hline 1 & 2.5000% & 2.5000% \\ 2 & 3.5000% & 3.5177% \\ \hline \end{tabular}