2. Consider three Treasury securities:

1. A 5% coupon bond issued in 2000 that is now a 10-year maturing on 6/15/2030.
2. A 1% coupon 10-year note issued this week to mature 6/15/2030.
3. A zero coupon 10-year note that matures on 6/15/2030.

What is the yield to maturity (YTM) today of the first security? What is the YTM of the second security? What is the YTM of the third security? Explain your answers.