a) All rates are annual. The one-year zero coupon rate is 3%. The two year zero-coupon rate is 3.5%. The three year zero-coupon rate is 3.25%. The price of a three-year 3% coupon bond with the face value of $1,000 is $ (accuracy to one cent).

b) All rates are annual. The one-year zero coupon rate is 3%. The two year zero-coupon rate is 3.5%. The three year zero-coupon rate is 3.25%

Its yield to maturity is .. percent (enter 3.65% as 3.65 not 0.0365, accuracy at least to two decimals)