Question 4 (5 marks) You are currently faced with two alternative investment opportunities: (a) (b) What would be the two-year interest rate per annum at which you would be indifferent to the choice between the two alternatives? Invest $1,000 in a one-year bond at an interest rate of 8%, then reinvest the proceeds in another one-year bond that is expected to earn an interest rate of 9%. Invest $1,000 in a two-year bond. i. 8.2% ii. 8.5% iii. 9.0% iv. None of the above