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Currently, the term structure is as follows: One-year bonds yield 9.00%, two-year zero-coupon bonds yield 10.00%, three-year and longer maturity zero-coupon bonds all yield 11.00%.

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Currently, the term structure is as follows: One-year bonds yield 9.00%, two-year zero-coupon bonds yield 10.00%, three-year and longer maturity zero-coupon bonds all yield 11.00%. You are choosing between one, two, and three-year maturity bonds all paying annual coupons of 10.00%. You strongly believe that at year-end the yield curve will be flat at 11.00%. a. Calculate the one year total rate of return for the three bonds. (Do not round intermediate calculations. Round your 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

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