3. (20 points) The yields on 1-year, 2-year and 3-year, risk-free, zero-coupon bonds are 3%, 3.5% and 4%, respectively. a) What is the price today of a 3-year coupon bond, which pays 5% in annual coupons and has a face amount of $1,000? b) What are the 1-year and 2-year forward rates (i and f)