Currently, the term structure is as follows: One-year bonds yield 11.75%, two-year zero-coupon bonds yield 12.75%, three-year and longer maturity zero-coupon bonds all yield 13.75%. You are choosing between one, two, and three-year maturity bonds all paying annual coupons of 12.75%. You strongly believe that at year-end the yield curve will be flat at 13.75%. 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.) 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