Consider a safe two-year zero-coupon bond issued in period t. The nominal value is F2,t+2 = CHF 100. The nominal value is F2,t+2 = CHF 100. Let the annual interest rate for a two-year bond be i2,t. In addition, there is a safe one-year zero coupon bond issued in period t with par value F1,t+1 = CHF 100. Let the annual interest rate for the one-year bond be i1,t. The investors are risk neutral. There is no liquidity premium and no inflation. 1.4 Mark the true statements. (a) The higher the expected interest rate ie 1,t+1 of a one-year bond next year, the lower the interest rate 12,t for a two-year bond. (b) The higher the price P1,t of the one-year bond today, the lower the interest rate i2,t for a two-year bond. (c) The higher the price P2,t of the two-year bond today, the lower the interest i2,t on a two-year bond. (d) The higher the expected interest rate ie1,t+1 of a one-year bond next year, the lower the price P2,t of a two-year bond. (e) The interest rate of a two-year bond i2,t is independent of the interest rate of a one-year bond this year i1.t.