You observe the following term structure:

Required:

a$.$ If you believe that the term structure next year will be the same as today's, calculate the return on $($i$)$ the $1-$year zero and $($ii$)$ the $4-$

year zero.

b$.$ Which bond provides a greater expected $1-$year return?

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

If you believe that the term structure next year will be the same as today's, calculate the return on $($i$)$ the $1-$year zero and $($ii$)$

the $4-$year zero.

Note: Do not round intermediate calculations. Round your answers to $1$ decimal place.