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Problem 15-17 The current yield curve for default-free zero-coupon bonds is as follows: Maturity (Years) 1 2 3 YTM (%) 6.5% 8.5 9.5 a. What

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Problem 15-17 The current yield curve for default-free zero-coupon bonds is as follows: Maturity (Years) 1 2 3 YTM (%) 6.5% 8.5 9.5 a. What are the implied 1-year forward rates? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete and correct. Forward Rate Maturity 2 years 10.54 % 3 years 11.53 % f. What should be the current price of a 3-year maturity bond with a 9.5% coupon rate paid annually? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Current price $ 1,003.91 g. If you purchased the coupon bond at the price you computed in part (f), what would your total expected rate of return be over the next year (coupon plus price change)? Ignore taxes. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Total expected rate of return %

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