Jacques would like to invest a certain amount of money for three years and considers investing in $(1)$ a one$-$year bond that pays $4$ percent, followed by a two$-$year bond that pays the forward rate, or $(2)$ a three$-$year bond that pays $9$ percent in each of the next three years. Jacques is considering the following investment strategies:

Strategy A:$$Buy a one$-$year bond that pays $4$ percent in year one, then buy a two$-$year bond that pays the two$-$year forward rate$$in years two and three.Strategy B:$$Buy a three$-$year bond that pays $9$ percent in each of the next three years.

If the two$-$year bond purchased one year from now pays $9$ percent annually, Jacques will choose

Scenario $1$

Security $1$:$$A Treasury bond with a $10-$year maturity that offers an annualized yield of $10$ percent to maturity.Security $2$:$$A corporate bond with a $10-$year maturity that offers an annualized yield of $11$ percent to maturity.

Security $1$

Security $2$