Currently, the term structure is as follows: One-year bonds yield 12.00%, two-year zero-coupon bonds yield 13.00%, three-year and longer maturity zero-coupon bonds all yield 14.00%. You are choosing between one, two, and three-year maturity bonds all paying annual coupons of 13.00%. You strongly believe that at year-end the yield curve will be flat at 14.00% 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