Assume you purchase a three-year $1,000 10% annual coupon bond when it is priced to yield 9%. You plan to reinvest all coupon payments received at the prevailing reinvestment rate to maturity (i.e. first coupon will be reinvested for two years, etc.). The yield curve is as follows: Term to Maturity 1 year 2 year 3 year Annual Spot Rate 8% 9% 12% If the expectations hypothesis holds, what amount do you expect your investment to accumulate to and what annual compound yield do you expect to earn on your investment? (7 marks - round all figures to 3 decimal places)