Patel Inc. has two alternatives for one-year investments. Alternative 1 is buy a one-year investment at the one-year spot rate which is known with certainty. Alternative 2 is buy a six-month bond and, when it matures in six months, buy another six-month bond. The first six-month spot rate is known with certainty, but the second six-month rate is unknown. The following table shows theoretical spot rates: Calculate the second six-month forward rate in which Patel would be indifferent between the two alternative investments.

Group of answer choices

6.00%

6.25%

6.50%

6.75%