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

Year	Forward Rate
1	5%
2	7
3	8

In addition to the zero-coupon bond, investors also may purchase a 3-year bond making annual payments of $45 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. Omit the "$" sign in your response.)

Price

$

b.	What is the yield to maturity of the coupon bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Yield to maturity

%

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. Omit the "%" sign in your response.)

Realized compound yield

%

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

Holding period return

%