Question: Question 9 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 9 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 4.00 purchase yields for the two 1-year zero coupon bond will be 2.52% and 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. b) What annual rate of interest will Priscilla earn on this 2-year investment? Round your results to five decimal places. a. 0.03120 b. 0.06309 O c. 0.03106 O d. 0.06337

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