1)"Consider the following five $1,000 par value zero-coupon bonds: (A) Maturity in 1 year and 3% Yield to Maturity; (B) Maturity in 2 years and 7% Yield to Maturity; (C) Maturity in 3 years and 8% Yield to Maturity; (D) Maturity in 4 years and 9% Yield to Maturity; and (E) Maturity in 5 years and 10% Yield to Maturity; Ignoring any liquidity premiums, the expected 1-year interest rate 1 year from now should be _________. "

2)

" A coupon bond that pays interest of $90 annually has a par value of $1000, matures in 3 years, and is selling today at a $65 premium from par value. The yield to maturity on this bond is _________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"