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3. Below is the list of prices for zero-coupon bonds of various maturities: (6 points) Maturity 1 2 Price of Zero $971.00 $879.73 $805.94 3
3. Below is the list of prices for zero-coupon bonds of various maturities: (6 points) Maturity 1 2 Price of Zero $971.00 $879.73 $805.94 3 years. What a. A 9.0% coupon $1,000 par bond pays an annual coupon and will mature in 3 should the yield to maturity on the bond be? b. If at the end of the year the yield curve flattens out at 8.0%, what will be the 1-year holding period return on the coupon bond
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