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

Maturity (Years)	Price of $1,000 Par Bond (Zero-Coupon)
1	$978.14
2	876.02
3	843.70

a.	An 4.6% 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 6.5%, 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

%