Consider two coupon bonds with principal 100 and maturity in 3 years. The first bond has an annual coupon of 5 and is trading at 95. The second bond has an annual coupon of 10 and is trading at 108. Answer the following two questions:

a) What is the 3-year yieldy(0,3)

y(0,3)? Express your answer in percentage points and round to 2 decimal places.

b) Suppose you also know that a zero-coupon bond with maturity in 1 year and principal 100 is trading for 92. What is the present value of an instrument with cash flows of 20, 35 and 60 in 1 year, 2 years and 3 years, respectively? Round your answer to 2 decimal places.