Prices of zero-coupon bonds reveal the following pattern of forward rates:

In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $60 with par value $1,000.

Required:

A) What is the price of the coupon bond?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

B) What is the yield to maturity of the coupon bond?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

C) Under the expectations hypothesis, what is the expected realized compound yield of the coupon bond?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

D) If you forecast that the yield curve in 1 year will be flat at 8.0%, what is your forecast for the expected rate of return on the coupon bond for the 1-year holding period?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Year123ForwardRate6%79