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You are considering investing $1,000 for a three-year period, beginning January 1, 1996 and ending...

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Accounting

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You are considering investing $1,000 for a three-year period, beginning January 1, 1996 and ending December 31, 1998. The market offers only zero-coupon bonds maturing in one, two or three years. Looking into your crystal ball, you see the following term structure by date of purchase: Yield-to-Maturity Two-Year Bond Date of Purchase One-Year Bond Three-Year Bond January 1, 1996 3% 4% 3% 3% 6% January 1, 1997 January 1, 1998 3% What is the maximum accumulated value of your investment at the end of three years, assuming that you hold any bonds that you buy until maturity

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