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Price of $1,000 Par Bond (Zero-Coupon) 1 $971.40 2 838.94 3 804.74 a. An 4.9% coupon $1,000 par bond pays an annual coupon and will

Price of $1,000 Par Bond (Zero-Coupon)
1 $971.40
2 838.94
3 804.74

a.

An 4.9% 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? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Yield to maturity %

b.

If at the end of the first year the yield curve flattens out at 8.4%, what will be the 1-year holding-period return on the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

I had 13.13% for A and 10.30% for B keep getting it wrong Thank you in advance!

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