following yield curve:

all rates are annual returns

use semi annual compounding

what is the expected two year spot rate, 1.5 years from today assuming .5% liquidity premium per year

a ) 4.53%

b) 5.01%

c) 5.51%

d) 4.08%

maturity .5 spot rate 3.5% maturity 1 spot rate 4% maturity 1.5 spot rate 4.5% maturity 2 spot rate 5% maturity 2.5 spot rate 5.5% maturity 3 spot rate 6% maturity 3.5 spot rate 6.5% maturity 4 spot rate 7%