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Below is a list of prices for zero-coupon bonds of various maturities. Par Bond (Zero-Coupon) a. An 8.5% coupon $1.000 par bond pays an annual

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Below is a list of prices for zero-coupon bonds of various maturities. Par Bond (Zero-Coupon) a. An 8.5\% 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 y Yield 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? (Round your ans Holding-Period Return 14

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