You are given the following incomplete information on the spot and forward rates of a bond of a given credit quality. The forward rate from year 1 to year 2 is f2=8%, the forward rate from year 2 to year 3 is 2f3=9%, one-year spot rate is Ri=4%. What is the three year spot rate R3, to the nearest per cent? R 4% Yeart 1 2 3 8% 9% (a) 4% (b) 5% (c) 6% (d) 7% (e) 8 %