. 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?

year D E F G FACE value 1000 year rate 1 0.0150000 2 price 1000(per $1000 in face value) $985.0000 $952.0000 $917.5000 $871.4420 $821.9270 forward rate 0.00000000 (0.03350254) (0.03623950) (0.05019946) (0.05681962) 0.0242951 0.0282929 0.0338165 0.0384616 3 4 5 year D E F G FACE value 1000 year rate 1 0.0150000 2 price 1000(per $1000 in face value) $985.0000 $952.0000 $917.5000 $871.4420 $821.9270 forward rate 0.00000000 (0.03350254) (0.03623950) (0.05019946) (0.05681962) 0.0242951 0.0282929 0.0338165 0.0384616 3 4 5