Stock A is currently traded at $60. Each year, the stock price can either go up by 10% or drop by 10%. Your manager asks you to price an European call option with a strike price of $55 and a maturity of two years from now. The YTM of a one-year zero Treasury bond is 2% and the forward rate from year one to year two is 3%.

What is the discount rate you should use for the second period to price the option?