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The one-year interest rate over the next three years is expected to be 5.00%, 7.00% 10.00%. The liquidity premium for one- to three-year bonds: 0%,

The one-year interest rate over the next three years is expected to be 5.00%, 7.00% 10.00%. The liquidity premium for one- to three-year bonds: 0%, 0.25%, 0.75%. What is the interest rate on the three year bond?

A. 8.08%

B. 7.67%

C. 7.75%

D. 8.33%

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