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Problem #8: Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $94.34, while a 2-year zero sells at $84.99. You are

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Problem #8: Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $94.34, while a 2-year zero sells at $84.99. You are considering the purchase of a 2-year-maturity bond making annual coupon payments. The face value of the bond is $ 100, and the coupon rate is 12% per year. Part A: What is the yield to maturity of the 2-year zero? Part B: What is the yield to maturity of the 2-Vear coupon bond

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