Question: very quickly please 2. Currently, the term structure is as follows: 1-year zero-coupon bonds yield 9%, 2-year bonds yield 10%, 3-year bonds and longer-maturity bonds

very quickly please 2. Currently, the term structure is as follows:

very quickly please

2. Currently, the term structure is as follows: 1-year zero-coupon bonds yield 9%, 2-year bonds yield 10%, 3-year bonds and longer-maturity bonds all yield 11%. You are choosing between 1-year, 2-year and 3-year maturity bonds all paying annual coupons of 10%. The I face value of the bond is $1.000. Which bond should you buy if you strongly believe that at year-end the yield curve will be flat at 11%? (30p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS

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