Choosing between short- and long-term securities Pam is an investor who seeks a maximum return on her investment of P = $300,000. Suppose that only two investment options are currently available: (1) Buy a 2-year bond, or (2) buy a 1-year bond, then take the proceeds from that bond after one year, and buy another 1-year bond. Suppose, also, that the data on interest rates for two years is publicly available and accurate, and that the 2-year bond does not make any payments until it matures and compounds interest annually. Assume that investors do not bear any transaction costs and are only concerned about the return on investment. How should Pam calculate returns on each investment strategy? Use the dropdown menus to select an appropriate method and then enter the return amounts in the "Return" column. Based on the returns, Pam will invest in______ Should there be a fixed fee of $25 per transaction, how, if at all, would it affect Pam's investment strategy? Pam would invest in just one 1-year bond instead. Pam would invest in two successive 1-year bonds instead. Pam would still invest in a 2-year bond