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2. Imagine a Lucas tree model with 3 time periods, t = 0, 1, 2, in which the government issues both one-period and two-period bonds.

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2. Imagine a Lucas tree model with 3 time periods, t = 0, 1, 2, in which the government issues both one-period and two-period bonds. Propose two investment strategies and use them to derive a simple version of the equation you previously wrote down. 2. Imagine a Lucas tree model with 3 time periods, t = 0, 1, 2, in which the government issues both one-period and two-period bonds. Propose two investment strategies and use them to derive a simple version of the equation you previously wrote down

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