You are a UK bank and some time ago you agreed the interest rate and sum of a loan for forward dates from the UKs Central Bank, the Bank of England (BoE is default free). Under this agreement you contracted to; 1) receive 10,000 in June 2035 from the BoE and 2) repay 11,110 in June 2036, exactly one year later to them (there are no other payments).

REQUIRED

a) What annual % interest rate did you agree to pay for the year June 2035 June 2036 (answer to 2 decimal places e.g. 1.23 for 1.23%)?