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Below is a list of prices for zero-coupon bonds of various maturities. Price of $1,000 Par Bond (Zero-Coupon) $949.20 866.42 817.77 aturity (Years) a. An

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Below is a list of prices for zero-coupon bonds of various maturities. Price of $1,000 Par Bond (Zero-Coupon) $949.20 866.42 817.77 aturity (Years) a. An 8.6% 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? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Yield to maturity b. If at the end of the first year the yield curve flattens out at 7.9%, what will be the 1-year holding-period return on the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Holding-period return

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