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Check my work 7 Problem 15-13 Prices of zero-coupon bonds reveal the following pattern of forward rates: 10 points Year Forward Rate 4% 5 8

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Check my work 7 Problem 15-13 Prices of zero-coupon bonds reveal the following pattern of forward rates: 10 points Year Forward Rate 4% 5 8 2 3 eBook Print References In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $50 with par value $1,000. a. What is the price of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price b. What is the yield to maturity of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to maturity % c. Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Realized compound yield % d. If you forecast that the yield curve in 1 year will be flat at 5.0%, what is your forecast for the expected rate of return on the coupon bond for the 1- year holding period? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding period return %

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