Today (10/13/20), the prices on zero-coupon US Treasury STRIPS are as follows: Maturity In years Effective Annual YTM Price per $1000 in face value) 985.000 952.000 1 0.0200 2 0.02500 3 917.500 0.030000 4 871.442 .0350000 5 821.927 .0400000 b. You think that short-term interest rates will rise over the next year. In particular, you think that the 1- year and the 2-year rates will be higher than they are currently. If you invest in the two-year now and sell it in one year, will your return be higher or lower than what you could get by investing in the one-year and holding it until maturity? If it depends, what does it depend upon? c. What is the forward rate implied by the above zero yield curve for the 2-year zero effective annual yield two years from now (i.e., the rate for a 2-year zero on 10/08/21)? (4 points) d. There is a 5 year corporate bond currently trading in the market that pays a 5 percent coupon, with (for simplicity) coupon payments made once a year at the end of the year (with the next coupon paid exactly one year from now). The current price of this bond is $1020. What would be the price of this bond if the market considered this corporation to be free of default risk?||