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The current 1-year spot rate is 5.30%, and the current 2-year spot rate is 5.80%. What is the 1-year forward interest rate that starts in

The current 1-year spot rate is 5.30%, and the current 2-year spot rate is 5.80%. What is the 1-year forward interest rate that starts in one year? (What risk free interest rate could a bank guarantee for a loan that starts in one year from today and ends after an additional year...repaid at the end of year 2.) A. 5.25% B. 5.75% C. 6.30% D. 6.80%

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