(Term Structure of interest rates) You want to invest your savings of $22.000 in government securities for the next 2 years Currently, you can investerther in a security that prys interest of 8.4 percent per year for the next 2 years or in a security that matures in 1 year bu pays only 5.9 percent interest. Il you make the latter choice, you would then renvest your savings at the end of the first you for another year a. Why might you choose to make the westment in the year Security that pays an interest rate of only 5.9 percent, as opposed to investing in the year security paying 4 percent provide rumenical support for your answer Which theory of structure have you supported in your n e ? b. Assume your required rate ofrem on the second your investment is 120 percent otherwise, you will choose to go with the 2 yeur security. What one could you offer for your preference? a. Why you choose to make the investment in the your security that paysan s tate of only 5 percent, as opposed to investing in the year securty paying 8.4 percerit? Provide n cial support for your answer Which theory of term structure have you supported in your art ? you choose the 2 yow security, the value of your savings after the second year will be SL Round to the newest do