Below is a list of prices for zero-coupon bonds of various maturities.

Maturity (Years)	Price of $1,000 Par Bond (Zero-Coupon)
1	$	966.78
2		894.28
3		803.54

a. A 6.4% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be? (Round your answer to 2 decimal places.)

b. If at the end of the first year the yield curve flattens out at 8.1%, what will be the 1-year holding-period return on the coupon bond? (Round your answer to 2 decimal places.)