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Assume that the yield curve is YT = 0 . 0 4 + 0 . 0 0 1 T . ( a ) What is

Assume that the yield curve is YT =0.04+0.001 T .
(a) What is the price of a par-$1,000 zero-coupon bond with a maturity
of 10 years?
(b) Suppose you buy this bond. If 1year later the yield curve is YT =0.042+0.001 T , then what will be the net return on the bond?

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