Assume you have a one$-$year Investment horlzon and are trylng 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 $8\%$ coupon rate and pays

the $$80$ coupon once per year. The third has a $10\%$ coupon rate and pays the $$100$ coupon once per year. Assume that all bonds are

compounded annually.

Required:

a$.$ If all three bonds are now priced to yleld $8\%$ to maturity, what are their prices? $($Do not round Intermedlate calculatlons. Round

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

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

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

c$.$ What is your rate of return on each bond during the one$-$year holding perlod? $($Do not round Intermedlate calculatlons.$)$