Suppose the interest rate on a $1-$year T$-$bond is $5\mathrm{.}00\%$ and that on a $2-$year T$-$bond is $6\mathrm{.}50\%.$ Assume that the pure expectations theory is NOT valid, and the MRP is zero for a $1-$year

T$-$bond but $0\mathrm{.}40\%$ for a $2-$year bond. What is the yield on a $1-$year T$-$bond expected to be one year from now? Do not round your intermediate calculations. Round your final answer to

$2$ decimal places.

a$.6\mathrm{.}07\%$

b$.8\mathrm{.}02\%$

c$.5\mathrm{.}55\%$

d$.5\mathrm{.}63\%$

e$.7\mathrm{.}21\%$