Currently, the term structure is as follows: One-year bonds yield 10.25%, two-year bonds yield 11.25%, three-year bonds and greater maturity bonds all yield 12.25%. You are choosing between one-, two-, and three-year maturity bonds all paying annual coupons of 11.25%, once a year. You strongly believe that at year-end the yield curve will be flat at 12.25%. 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.) One Year Two Years Three Years One year total rate of return % % % b. Which bond you would buy? One-year bond Two-year bond Three-year bond