Suppose the interest rate on a $1-$year T$-$bond is $4\mathrm{.}80\%$ and that on a $2-$year T$-$bond is $6\mathrm{.}10\%.$ 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$.7\mathrm{.}42\%$

b$.5\mathrm{.}36\%$

c$.5\mathrm{.}68\%$

d$.5\mathrm{.}25\%$

e$.6\mathrm{.}61\%$