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A 5-year 6% coupon bond paying coupons annually sells for $96. A 5-year 3% coupon bond paying coupons annually sells for $86. The 5-year zero

A 5-year 6% coupon bond paying coupons annually sells for $96.

A 5-year 3% coupon bond paying coupons annually sells for $86.

The 5-year zero rate should be closest to:

a.

27.44%

b.

3.42%

c.

4.48%

d.

5.49%

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