Maturity (Yrs) Price of $1000 Par Bond (Zero Coupon)

1 952.60

2 836.44

3 802.14

a. A 6.3% coupon $1,000 par bond pays an annual coupon and will mature in 3 years. What should the yield to maturity on the bond be?

b. If at the end of the first year the yield curve flattens out at 8.3%, what will be the 1-year holding-period return on the coupon bond?

***I have found the solution to part a which has a current market price of $965.79 and a YTM of 7.57%. Needing help on calculating part b.