Assume that the interest rate on a 1-year Treasury security is currently 6% and the rate on a 2-year Treasury security is 5%. Assume that the pure expectations theory is correct. To the closest whole percent, what is a reasonable forecast of the rate on 1-year Treasury securities next year?
a. 4.0%
b. 4.5%
c. 5.0%
d. 5.5%
e. 6.0%