1.An interest rate analyst at a fund has obtained a table of USD interest rate swap
rates as of today:
Term (Years)  Annualized Swap Rate
0.5  0.695%
1.0  0.905%
1.5  1.035%
Given this data, what is the semi-annually compounded 1.5-year spot rate,
expressed as an annual rate?
A. 0.88%
B. 1.04%
C. 2.08%
D. 3.13%