a. 5. Consider the following two zero coupon bonds with face value of $1000: Annual return for 2-year bond is 1.5% b. Annual return for 3-year bond is 2% Assume the pure expectations theory for the term structure of interest rates 1) What is the value of the 3-year bond at the end of two years? 2) Consider two investment strategies: i. Buy 2-year zero coupon bond and hold it until maturity ii. Buy 3-year zero coupon bond and sell it at the end of two years Which strategy will give you higher percentage return