Question 5 (1 point) You have money to invest at t= 0 and you have a 10-year investment horizon. All you care about is maximizing your expected payout at t = 10. Given: 10,4 = 6%, 10,10 = 7.5%; f4.1 and f5,5 are set such that there is no arbitrage in the market. Your own view is that the 6-year rate at t = 4 will be 8%. You are considering 3 different investment strategies: i) Invest in a 10-yr O-coupon bond at t=0 ii) Invest in a 4-year zero coupon bond at t = 0, with the intention of rolling over your investment at t = 4 in a 6-year zero coupon bond iii) Invest in a 4-year zero coupon bond at t= 0, with the intention of rolling over your investment att = 4 for 1 year using f4,1 and then roll over all of your money again for another 5 years at t= 5 using f5,5- Which one of the following statements is true? Option ii is better than option i Option iii is better than option ii Option i is better than option iii Option iii is better that option i You are indifferent between options ii and iii None of the above