Currently, the term structure is as follows: One-year bonds yield 9.75%, two-year bonds yield 10.75%, three-year bonds and greater maturity bonds all yield 11.75%. You are choosing between one-, two-, and three-year maturity bonds all paying annual coupons of 10.75%, once a year. You strongly believe that at year-end the yield curve will be flat at 11.75%. a. Calculate the one year total rate of return for the three bonds. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Which bond you would buy? One-year bond Two-year bond Three-year bond