单选题

Vega research has been conducting investor polls for Third State Bank. They have found the most investors are not willing to tie up their money in a 1-year (2-year) CD unless they receive at least 1.0% (1.5%) more than they would on an ordinary savings account. If the savings account rate is 3%, and the bank wants to raise funds with 2-year CDs, the yield must be at least（）。

A、 4.0%, and this represents a required rate of return.
B、 4.5%, and this represents a discount rate.
C、 4.5%, and this represents a required rate of return.

【正确答案】 C

【答案解析】

Since we are taking the view of the minimum amount required inducing investors to lend funds to the bank, this is best described as a required rate of return. Based upon the numerical information, the rate must be 3.0+1.5=4.5%.