The Wall Street Journal reports that the rate on two-year Treasury securities is 4.75 percent and the rate on three-year Treasury securities is 5.95 percent. Thus, according to the unbiased expectations hypotheses, the market expects the one-year Treasury rate to be approximately _________ two years from today.

Select one:

A. 7.15 percent

B. 13.10 percent

C. 1.20 percent

D. 8.35 percent