计算利率

问题如下：

Italian one-year government debt has an interest rate of 0.73 percent; Italian two-year government debt has an interest rate of 1.29 percent. The breakeven one-year reinvestment rate, one year from now is closest to:

选项：

A.

1.01 percent

B.

1.11 percent

C.

1.85 percent

解释：

C is correct. The one-year forward rate reflects the breakeven one-year reinvestment rate in one year, computed as follows: