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Suppose you observe the following interest rates from the yield curve: 2-year Treasury note: 5% 4-year Treasury note: 6% These rates imply the interest rate,

Suppose you observe the following interest rates from the yield curve:

2-year Treasury note: 5%

4-year Treasury note: 6%

These rates imply the interest rate, X, on the 2-year Treasury notes 2 years from now. What is X?

Select one:

a. 7%

b. 5%

c. 5.5%

d. 6.5%

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