Problem 15-14 You observe the following term structure: Effective Annual YTM 6.38 6.4 1-year zero-coupon bond 2-year zero-coupon bond 3-year zero-coupon bond 4-year zero-coupon bond a. If you believe that the term structure next year will be the same as today's, calculate the return on (1) the 1-year zero and (ii) the 4. year zero. (Do not round Intermediate calculations. Round your answers to 1 decimal place.) One year return on 1-year bond One your return on 4-year bonds b. Which bond provides a greater expected 1-year return? 1-year zero.coupon bond Problem 15-14 You observe the following term structure: Effective Annual YTM 6.38 6.4 1-year zero-coupon bond 2-year zero-coupon bond 3-year zero-coupon bond 4-year zero-coupon bond a. If you believe that the term structure next year will be the same as today's, calculate the return on (1) the 1-year zero and (ii) the 4. year zero. (Do not round Intermediate calculations. Round your answers to 1 decimal place.) One year return on 1-year bond One your return on 4-year bonds b. Which bond provides a greater expected 1-year return? 1-year zero.coupon bond