1) Suppose that the path of expected 1-yr interest rates over the next three years is 2%, 4%, 4.5%. If the current two-year interest rate is 4%, what is the implied term premium on the two-year bond?

2) Suppose the current 1-year zero-coupon rate is 3% and the current 2-year zero-coupon rate is 4%. What is the price of a two-year bond with a face value of $100 that pays a coupon of 10% annually.