implied forward rates calculate 3 year

3. Binomial Model of Bond Options (12%). An F1 manager purchases a zero-coupon bond two years to maturity. The manager paid $76.95 per $100 for the bond. The current yield on a one-year bond of equal risk is 12 percent, and the one-year rate in one year is expected to be either 16.65 percent or 15.35 percent. Either rate is equally probable. (3% for each question). 1) What is the yield to maturity for the two-year bond if held to maturity? 2) Given the expected one-year rates in one year, what are the possible bond prices in one year? 3. Binomial Model of Bond Options (12%). An F1 manager purchases a zero-coupon bond two years to maturity. The manager paid $76.95 per $100 for the bond. The current yield on a one-year bond of equal risk is 12 percent, and the one-year rate in one year is expected to be either 16.65 percent or 15.35 percent. Either rate is equally probable. (3% for each question). 1) What is the yield to maturity for the two-year bond if held to maturity? 2) Given the expected one-year rates in one year, what are the possible bond prices in one year