Assume the current yield curve is as follows:

Maturity (years)	Yield
1	2.500%
2	3.500%
3	4.000%

Assuming semi-annual compounding and that zero coupon bonds of all maturities are available, an investor wants to ride the yield curve and considers the following strategies:

i. Buying a 2 year zero coupon bond today and holding it until maturity ii. Buying a 3 year zero coupon bond today and selling it in two years time (a): What is the 2-year holding period yield from buying a two-year bond today and holding it to maturity?

[ Select ] ["7.000%", "None of the other answers is correct", "3.352%", "6.704%", "3.500%"] (b): What is the 2-year holding period yield from buying a three-year bond today and selling it in two year's time?

[ Select ] ["4.754%", "9.508%", "2.533%", "None of the other answers is correct", "5.066%"] (c): Assume that in one year's time, the yield curve will shift upwards by 0.50%. What is the 2-year holding period yield from buying a one-year bond today, holding it to maturity and then buying another one-year bond and holding it to maturity?

[ Select ] ["5.614%", "None of the other answers is correct", "2.807%", "2.500%", "2.750%"] (d): What is f(1,2)?

[ Select ] ["1.505%", "None of the other answers is correct", "1.510%", "4.510%", "4.505%"] (e): What is f(2,3)?

[ Select ] ["None of the other answers is correct", "2.504%", "2.507%", "5.007%", "5.004%"]