Suppose that investors expect the inflation rate to be Year Annual Inflation 2014 7% 2015 6% 2016 3% Each year after 2016 3% Assume that the real risk-free rate will remain at a constant 2 percent per year for the foreseeable future. Assume that maturity risk premiums on Treasury bonds and bills are 0.1 for 1-year securities. For securities having maturities in more than one year, maturity risk premiums increase 0.10 percent for each year to maturity up to a limit of 1 percent on 10-year or longer-term Treasury bonds. Thus, the maturity premium for a 2-year security is 0.20 percent. Calculate the interest rate on 2-year treasury securities. A. 15.2% B. 8.5% C. 8.70% D. 9.2%