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The three successive 1-year rates are 2.00% (year 0 to year 1), 2.20% (year 1 to year 2), and 2.50% (year 2 to year 3),

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The three successive 1-year rates are 2.00% (year 0 to year 1), 2.20% (year 1 to year 2), and 2.50% (year 2 to year 3), the last two are forward rates. What is the 3-year spot rate? 0 [A] 1.23% 0 [B] 2.23% [C] 1.15% O [D] 1.67% 0 [E] None of the above

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