5. Pure expectations theory: Multi-year periods Dmitri would like to invest a certain amount of money for three years and considers investing in ( 1 ) a one-year bond that pays 4 percent, followed by a two-year bond that pays the forward rate, or (2) a three-year bond that pays 9 percent in each of the next three years. Dmitri is considering the following investment strategies: Strategy A: Buy a one-year bond that pays 4 percent in year one, then buy a two-year bond that pays the two-year forward rate in years two and three. Strategy B: Buy a three-year bond that pays 9 percent in each of the next three years. If the two-year bond purchased one year from now pays 7 percent annually, Dmitri will choose Which of the following describes conditions under which Dmitri would be indifferent between Strategy A and Strategy B? The rate on the two-year bond purchased one year from now is 11.589 percent. The rate on the two-year bond purchased one year from now is 12.168 percent. The rate on the two-year bond purchased one year from now is 12.632 percent. The rate on the two-year bond purchased one year from now is 9.967 percent