Alex would like to invest a certain amount of money for three years and considers investing in (1) a one-year bond that pays 6 percent, followed by a two-year bond, or (2) a three-year bond that pays 7 percent in each of the next three years. Alex is considering the following investment strategies: Strategy A: Buy a one-year bond that pays 6 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 7 percent in each of the next three years. If the two-year bond purchased one year from now pays 11 percent annually, Alex will choose Which of the following describes conditions under which Alex would be indifferent between Strategy A and Strategy B? The rate on the one-year bond purchased one year from now is 6.904 percent. The rate on the one-year bond purchased one year from now is 7.504 percent. o The rate on the one-year bond purchased one year from now is 7.879 percent. The rate on the one-year bond purchased one year from now is 8.179 percent. Alex would like to invest a certain amount of money for three years and considers investing in (1) a one-year bond that pays 6 percent, followed by a two-year bond, or (2) a three-year bond that pays 7 percent in each of the next three years. Alex is considering the following investment strategies: Strategy A: Buy a one-year bond that pays 6 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 7 percent in each of the next three years. If the two-year bond purchased one year from now pays 11 percent annually, Alex will choose Which of the following describes conditions under which Alex would be indifferent between Strategy A and Strategy B? The rate on the one-year bond purchased one year from now is 6.904 percent. The rate on the one-year bond purchased one year from now is 7.504 percent. o The rate on the one-year bond purchased one year from now is 7.879 percent. The rate on the one-year bond purchased one year from now is 8.179 percent