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 9 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has a 7.7% coupon rate and pays the $77 coupon once per year. The third has a 9.7% coupon rate and pays the $97 coupon once per year. Assume that all bonds are compounded annually.

a. If all three bonds are now priced to yield 7.7% to maturity, what are their prices?(Do not round intermediate calculations.Round your answers to 2 decimal places.)

Zero7.7% Coupon9.7% CouponCurrent prices$$$

b-1. If you expect their yields to maturity to be 7.7% at the beginning of next year, what will their prices be then?(Do not round intermediate calculations.Round your answers to 2 decimal places.)

Zero7.7% Coupon9.7% CouponPrice one year from now$$$

b-2. 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.)

Zero7.7% Coupon9.7% CouponRate of return%%%