Suppose the Fed increases the federal funds rate from 3 to 3.5% and announced its intention to increase again by 0.5% again in 6 months. There is a 1% risk premium on the one-year rate. After the announcement the six-month rate remains unchanged but the one-year rate jumps. Which of the following is consistent with this scenario?

A) The one-year rate jumps from 4.5% to 4.75%

B) At the time of the rate change the yield curve remains unchanged

C) The one-year rate jumps from 4.25% to 4.75%

D) The one-year rate jumps from 4% to 4.75%