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Prices of zero-coupon bonds reveal the following pattern of forward rates: Forvard Rate In addition to the zero-coupon bond, investors also may purchase a 3-year

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Prices of zero-coupon bonds reveal the following pattern of forward rates: Forvard Rate In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $40 with par value $1,000 a. What is the price of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price b. What is the yield to maturity of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to maturity c. Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond? (Do not round Intermediate MOLEN Yield to matunty c. Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Realized compound yield d. If you forecast that the yield curve in 1 year will be fiat at 6.0%, what is your forecast for the expected rate of return on the coupon bond for the 1-year holding period? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding period retum

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