Suppose that albert can buy a bond for $1,000 that matures in two years and pays albert $1,102.5 with certainty. today he is indifferent between this bond and one that has some risk but on which the annual interest rate is 3% higher. how much, to the nearest penny, does the riskier bond pay in two years?
a.$1,166.40
b. $1,160.00
c. $1,168.65
d.$1,169.64