QUESTION 3 a1An investor has funds to invest over one year. He anticipates a 1% increase inthe curve in six months. The 6-month and 1-year zero-coupon rates are respectively 3% and 3.2%. He has two different opportunities: 1. he can buy the 1-year zero-coupon T-bond and hold it until maturity 2. or he can choose a rollover strategy by buying the 6-month T-bill, holding ituntil maturity, and buying a new 6-month T-bill in six months, and holding ituntil maturity Required: i. Calculate the annualized total return rate of these two strategies assuming that the investor's anticipation is correct. (5 marks) ii. Same question when interest rates decrease by 1% after six months