Currently, the term structure is as follows: one-year bonds yield 7%, two-year zero-coupon bonds yield 8%, three-year and longer maturity zero-coupon bonds all yield 9%. you are choosing between one, two, and three-year maturity bonds all paying annual coupons of 8%. you strongly believe that at year-end the yield curve will be flat at 9%. a. calculate the one year total rate of return for the three bonds. (do not round intermediate calculations. round your answers to 2 decimal places.) b. which bond you would buy? one-year bond two-year bond three-year bond

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2