One year treasury bills currently earn 5.35 percent. You expect that one year from now, one year treasury bill rates will increase to 5.50 percent. The liquidity premium on two-year securities is 170 percent. If the liquidity theory is correct, what should the current rate be on two-year treasury securities?
A) 11.0200%
B) 5.5100%
C) 5.4250%
D) 3.6730%