7 12.5 points eBook Print References The yield to maturity on 1-year zero-coupon bonds is currently 7.5%; the YTM on 2-year zeros is 8.5%. The Treasury plans to issue a 2- year maturity coupon bond, paying coupons once per year with a coupon rate of 9.5%. The face value of the bond is $100. Required: a. At what price will the bond sell? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What will the yield to maturity on the bond be? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. c. If the expectations theory of the yield curve is correct, what is the market expectation of the price for which the bond will sell next year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. Recalculate your answer to part (c) if you believe in the liquidity preference theory and you believe that the liquidity premium is 2.5%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Price b. Yield to maturity c. Price d. Price $ 93.31 %