Consider a one year bond and a two year bond paying the same amount on maturity. Ignoring any differences in risk between the two bonds, arbitrage would ensure that

Group of answer choices

the price of the two$-$year bond today is equal to the expected price of the two$-$year bond next year

the interest rate on the two$-$year bond will reflect the current interest rate on the one$-$year bond and the expected interest rate on the one$-$year bond next year

the current two$-$year interest is dependent on the current one$-$year rate, but independent of the expected one$-$year interest rate next year

none of the other alternatives are correct.