Suppose that you are considering investing in a 1-yr US T-bill that guarantees a return of 2% and that you are extremely risk averse. Alternatively, you could buy a 1 -yr bond issued by IBM that has a 30% probability of a 6% return and a 70% probability of a 1% return. What is the expected return of each of the bonds? Which bond would you prefer to buy? a) ER of US T-bill =2% a. ER of IBM bond =2.5% b. Would prefer the IBM bond b) ER of US T-bill =2% a. ER of IBM bond =3.5% b. Would prefer the IBM bond c) ER of US T-bill =2% a. ER of IBM bond =1.8% b. Would prefer the US T-bill d) ER of US T-bill =2% a. ER of IBM bond =2.5% b. Would prefer the US T-bill because it is a default free bond