To yield, a six-year bond is purchased with coupons each year.

You can use the following formula to calculate Sofia’s earnings from this arrangement

Yield = [(Principal + Interest) + Savings Account Accrual] / Principal

For example, let’s assume that Sofia redeems the bond after three years and has $10,000 worth of principal plus an additional $2,500 in accrued interest. The total redemption value would be $12,500, which she would keep in her savings account at 5.5% for five years. We can then calculate the accrual amount assuming that there are no withdrawals from the account.

(1+0.055)^5 = 1.3385

$12,500 * 1.3385 = 16795

Final, the total yield for an entire period can be calculated.

(16795 + 12500) / 12500 = 2.1436 <=> 214% return over 8 year period.<

Overall it’s clear that while this approach could potentially provide larger yields under certain circumstances due compounding effect of interest rates most likely outcome will still remain below original expectations due lower accrual rate associated with savings account when compared against what was offered initially through bond purchase itself