1. You have a one-year horizon and purchase a cash flow of 250,000 in 6 years. Calculate your ROR for the following three expectations:

(a):Static

(b):yield curve ride

(c): Using forwards to get expected future rate and, thereby, the proceeds.

You can use either the exact or the approximate formulas for forwards.

2. Repeat #4 for a two-year horizon. Under Static expectations, assume the one-year reinvestment rate is the same as the original rate for the cash flow you purchased. For Yield Curve Ride, use the current one-year rate for the reinvestment rate. For Forward use the one-year rate expected for next year.

Both questions are connected to the same question please answer questions, please give proper solutions in the best way possible. (class is fixed income).