Suppose Intel wishes to raise $1,000,000 with debt financing and considers two options: it can either issue debt for 2 years at a fixed annual interest rate of 3%, or borrow for 1 year at an annual rate of 2% and renew the debt at a floating rate for the second year. What is the floating rate that makes Intel indifferent between these two options? (a) 1% (b) 2% (c) 3% (d) 4%