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If you have 1-year rate is 8%, 2-year rate is 9%, and 3-year rate is 10%. Assume that the pure expectations theory for the term

If you have 1-year rate is 8%, 2-year rate is 9%, and 3-year rate is 10%. Assume that the pure expectations theory for the term structure of interest rates holds, no liquidity or maturity premium exists.

What is implied 1 year rate 2 year from now?

a. 9%

b. 10%

c. 11%

d. 12%

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