10. Suppose that 1-year, 2-year, and 3-year zero rates are, respectively, 1%, 2%, and 3% per annum with continuous compounding. a) Compute the cash price of a bond with a face value of $100 that matures in 3 years and pays an annual coupon of 1% at the end of each year. Assume that the bond has just been issued and that the first annual coupon is paid in one year. b) Compute the annual coupon rate of a three-year bond which is issued at par. Assume that the bond pays its coupon annually at the end of each year and that it has just been issued. 10. Suppose that 1-year, 2-year, and 3-year zero rates are, respectively, 1%, 2%, and 3% per annum with continuous compounding. a) Compute the cash price of a bond with a face value of $100 that matures in 3 years and pays an annual coupon of 1% at the end of each year. Assume that the bond has just been issued and that the first annual coupon is paid in one year. b) Compute the annual coupon rate of a three-year bond which is issued at par. Assume that the bond pays its coupon annually at the end of each year and that it has just been issued