have $1,000 to invest over an investment horizon of three years. TI rs various options. You can buy (1) a sequence of three one-year bo r bond; or (iii) a two-year bond followed by a one-year bond. The cur s you that the one-year, two-year, and three-year yields to maturity ar cent, and 4.7 percent respectively. You expect that one-year interest cent next year and 4 percent the year after that. Assuming annual co mpute the return on each of the three investments. structions: Enter your responses rounded to the nearest two decimal pected return for (1) = xpected return for (II) = % expected return for (11) 1% Check my work 2 20 points 8 00:42:56 You have $1,000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (1) a sequence of three one-year bonds: (ll ) a three- year bond; or (II) a two-year bond followed by a one-year bond. The current yield curve tells you that the one-year, two-year, and three-year yields to maturity are 5.5 percent, 5 percent, and 4.7 percent respectively. You expect that one-year Interest rates will be 4 percent next year and 4 percent the year after that. Assuming annual compounding. compute the return on each of the three investments. Instructions: Enter your responses rounded to the nearest two decimal places. Expected return for (0) = % Expected return for (11) = % Expected return for (1) Skipped References %