8. a. Assume zero-coupon bonds of all maturities have a face value of $1,000. Currently 1-year maturity zero-coupon bond is trading at $952.38, 2-year maturity zero-coupon bond is trading at $890, and 3-year maturity zero-coupon bond is trading at $816.30. Determine the yield to maturity of a 3-year coupon bond with coupon rate of 5% (paid annually) and a face value of $1,000. Please present the equation that will allow you to solve for the yield to maturity for the bonds YTM. [9 Marks] b. Using the information given in part (a), estimate the forward rate ( 3 f ) for period 3 or year 3.

8. a. Assume zero-coupon bonds of all maturities have a face value of $1,000. Currently 1-year maturity zero-coupon bond is trading at $952.38, 2-year maturity zero-coupon bond is trading at $890, and 3-year maturity zero-coupon bond is trading at $816.30. Determine the yield to maturity of a 3-year coupon bond with coupon rate of 5% (paid annually) and a face value of S1,000. Please present the equation that will allow you to solve for the yield to maturity for the bond's YIM.9 Marlks b. Using the information given in part (a), estimate the forward rate (s) for period 3 or year 3 4 Marksl