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Below is a list of prices for zero-coupon bonds of various maturities. Price of $1,000 Par Bond Maturity (years) (zero-coupon) $943.40 873.52 816 37 a.

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Below is a list of prices for zero-coupon bonds of various maturities. Price of $1,000 Par Bond Maturity (years) (zero-coupon) $943.40 873.52 816 37 a. An 8.5% coupon $1,000 par bond pays an annual coupon and will mature in three years. What should the yield to maturity on the bond be? b. If at the end of the first year the yield curve flattens out at 8%, what will be the 1-year holding-period return on the coupon bond? Below is a list of prices for zero-coupon bonds of various maturities. Price of $1,000 Par Bond Maturity (years) (zero-coupon) $943.40 873.52 816 37 a. An 8.5% coupon $1,000 par bond pays an annual coupon and will mature in three years. What should the yield to maturity on the bond be? b. If at the end of the first year the yield curve flattens out at 8%, what will be the 1-year holding-period return on the coupon bond

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