Question Help Term structure of interest rates) You want to invest your savings of 29.000 in government securities for the next 2 years Currently, you can investether in a security that pays Interest of 2 percent per year for the next 2 years or na security that matures in 1 year but pays only 6.4 percent interest you make the latter choice, you would then reinvest your savings at the end of the first year for another year . Why might you choose to make the investment in the 1-year security that paysanterest rate of only 6.4 percent, as opposed to rivesting in the year security paying percent Providen ical support for your answer Which theory of term structure have you supported in your answer? b. Assume your required rate of return on the second year investment is 110 percent otherwise, you will choose to go with the 2 year security What ratione could you offer for your preference? a. Why mill you choose to make the investment in the year security that pays an interest rate of only 6.4 percent, as opposed to investing in the year security paying 2 percent Provide numerical support for your answer Which theory of term structure have you supported in your answer If you choose the 2-year security, the value of your savings after the second year will be Round to the nearest dolar) Question Help (Tom Structure of interest rates) You want to invest your savings of $29.000 in government securities for the next 2 years Currendy you can rest ether in a security that pays et 2 percent per year for the next 2 years in a security that matures in 1 year but pays only 6.4 percent interest you make the latter choice you would then revest your savings at the end of the first year for another your a. W might you choose to make the investment in the year security that pays an interest rate of only 64 percentas opposed to investing in the year early paying 2 percent Provide numerical support for your answer Which theory of term structure have you supported in your answer? b. Masume your required rate of return on the second year investment is 110 percent otherwise, you will choose to go with the year security What rationale could you offer for your preference? a. W might you choose to make the investment in the 1 year security that pays an interest rate of only 6.4 percent as opposed to investing in the 2-year security paying 8 2 percent provide numerical support for your answer Which theory of term structure have you supported in your answer? If you choose the 2 year security, the value of your savings after the second year will be found to the nearest dollar)