If

Bond 1: 1 year maturity, 5% coupon, price = 99.50

Bond 2: 2 year maturity, 6% coupon, price = 101.25

then

The zero coupon yield for 1 year is the yield at which 99.5 = 105/(1+y), y = 5.53%.

The yield for the second year is inferred as follows: 101.25 = 6/(1.0553) + 106/(1+y), y = 5.32%.

My question is how did they get the 105 in the first one and how did they get the yield for the second year.