# You are given the following information on the bond market money availible on jan 1, 2004 \$1000 interest rates on jan 1 2004 on bonds of different maturities: 1 yr 4% 2 yr 5%, 3 yr 5.5%, 4 yr 6% note consider these to be bonds that compound the interest at the rate given that is the 3 yr bond pays \$1000×1.055 maturity. expected furture interest rates on one year bonds jan1 2005 6.5% , jan 1 2006 7%, jan 12007 9% investment horizon 4 years ending jan 1 2008 what should an investor but to yield the largest stream of expected income over the period from jan 1 2004 to jan 1 2008?

You are given the following information on the bond market money availible on jan 1, 2004 \$1000 interest rates on jan 1 2004 on bonds of different maturities: 1 yr 4% 2 yr 5%, 3 yr 5.5%, 4 yr 6% note consider these to be bonds that compound the interest at the rate given that is the 3 yr bond pays \$1000×1.055 maturity. expected furture interest rates on one year bonds jan1 2005 6.5% , jan 1 2006 7%, jan 12007 9% investment horizon 4 years ending jan 1 2008 what should an investor but to yield the largest stream of expected income over the period from jan 1 2004 to jan 1 2008?