Assume you have a one$-$year investment horizon and are trying to choose among three bonds. All have the same degree of default

risk and mature in $10$ years. The first is a zero$-$coupon bond that pays $$1,000$ at maturity. The second has an $8\mathrm{.}9\%$ coupon rate and

pays the $$89$ coupon once per year. The third has a $10\mathrm{.}9\%$ coupon rate and pays the $$109$ coupon once per year. Assume that all

bonds are compounded annually.

Required:

a$.$ If all three bonds are now priced to yield $8\mathrm{.}9\%$ to maturity, what are their prices? $($Do not round intermediate calculations. Round

your answers to $2$ decimal places.$)$

b$.$ If you expect their yields to maturity to be $8\mathrm{.}9\%$ at the beginning of next year, what will their prices be then? $($Do not round

intermediate calculations. Round your answers to $2$ decimal places.$)$

c$.$ What is your rate of return on each bond during the one$-$year holding period? $($Do not round intermediate calculations. Round your

answers to $2$ decimal places.$)$