Question: Question 8 Priscilla will make a 2-year investment using two consecutive 1-year Not yet saved $500,000 zero coupon bonds. The maturity proceeds of the first

Question 8 Priscilla will make a 2-year investment using two consecutive 1-year Not yet saved $500,000 zero coupon bonds. The maturity proceeds of the first zero Marked out of coupon bond will be rolled over into the second zero coupon bond. The 2.00 purchase yields for the two 1-year zero coupon bonds will be 2.52% and P Flag 3.69% p.a., respectively (annual effective rates). Note that any surplus funds question after one year can be invested for one year at a rate of 3.86% p.a. a) Calculate the price of second zero coupon bond. Round your answer to four decimal places. a. 482206.5773 O b. 481417.2925 O c. 482202.7118 O d. 487709.7152

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