An investor is indifferent between buying a $2-$year security issued today and a one$-$year

security today followed by buying a one$-$year security to be issued at the beginning of the

next year. The one$-$year security issued today has a yield of $3\%$; the investor expects that the

one$-$year security issued one year from today will have a yield of $10\%.$ That means that the

$2-$year security has a yield of:

a$.7\mathrm{.}56\%$

b$.4\mathrm{.}51\%$

c$.6\mathrm{.}44\%$

d$.13\mathrm{.}00\%$

e$.$ None of the Above