i need help with part f and g please

In this question you will compare three investment strategies in a situation where interest rates are expected to rise. Many investors consider the lock-in to be inferior when rates rise because of interest rate risk. What you will see in this example is that anticipated rate increases are priced into the yield curve and so all strategies are equivalent. However, with unanticipated rate increases there is a dominant investment strategy. Use the data in the table for zero coupon bonds below to complete parts (a) through (h). Spot Rate elds and Prices Maturity Price (FV = $100) Weld 1 $95238 5% 2 $89000 6% f) Strategy 3: The Roll-Over. Solve for the return over the 2 Years. You buy the 1-year bond at time 0. A year passes and the central bank fulls expectations and announces an increase in interest rates to 7.010%. The 1-year spot rate rises to 7.010%. Your bond matures and you use all the money to buy 1-year bonds at time t= 1. (Assume that you can buy fractions of a bond.) What price will the 1-year bond trade at t = 1? How many bonds do you buy? You hold those bonds until they mature at t= 2. What is your compound annual average return over the two years? The price of the 1-year bond trade at t =1 is $ (Do not round until the nal answer Then round to three decimal places.) Using the proceeds from your bond in the rst year, you can afford to buy (Do not round until the nal answer. Then round to three decimal places.) You hold the bonds in the second year until they mature. The compound annual average return over the two years is %. (Do not round until the nal answer. Then round to two decimal places.) (this is your answer from part c). bondsatt=1. 9) Use your answers to the previous parts of this question to answer the following question. If interest rates rise as expected, does it matter which bonds you buy or what investment strategy you adopt over the two years? (9 A. If interest rates rise as expected, the best strategy is to buy 2-year bonds at time t = 0 and sell those bonds at maturity. O B. If interest rates rise as expected. the best strategy is to buy 1-year bonds at time t = 0, sell those bonds at maturity, and use the money to buy 1-year bonds at time t = 1. O c. If interest rates rise as expected, the best strategy is to buy 2-year bonds at time t = 0, sell those bonds at t = 1, and use the money to buy 1-year bonds at time t = 1. O D. The strategies all result in the same per annum compound annual average return