Exercise 5 The following three zero coupon bonds have $1000 as face value and the Maturity in years I Price 1 2 3 963.86 918.54 858.92 A bond has a face value of $1000 a coupon rate of 6% and matures in three years. 1) Calculate the yield to maturity of this bond (5 pts) (A) 5.86% (B) 5.41% [C) 5.14% (D) 5.54% 2) Calculate the expected rate of return of this bond (5 pts) (A) 3.75% (B) 2.91% [C) 3.32% (D) 3.5%