3. If the current YTM on a 1-year bond is 6% and we expect the YTM on the 1 -year bond 1 year from now is 8%, (a) calculate the current YTM on a 2-year bond and (b) determine the shape of the yield curve. 4. Suppose the U.S. Treasury Department just issued 6%,10-year annual-coupon TIPS (Treasury Inflation-Protected Securities) at a price equal to its face value of $1,000. If the CPI (Consumer Price Index) rises by 2% in the first year, calculate the annual coupon payment at the end of Year 1