3. Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zerocoupon bond that pays $1,000 at maturity. The second has an 8% coupon rate and pays the $80 coupon once per year. The third has a 10% coupon rate and pays the $100 coupon once per year. a. If all three bonds are now priced to yield 8% to maturity, what are their prices? b. If you expect their yields to maturity to be 8% at the beginning of next year, what will their prices be then? What is your holding-period return on each bond? c. Recalculate your answer to (b) under the assumption that you expect the yields to maturity on each bond to be 7% at the beginning of next year.