Question 12 (4p) A two-year 30% coupon bond with face value $100 has a yield to maturity of 5%. The current yield on one-year zero-coupon bonds is 1% and investors expect that next year the yield on oneyear zero-coupon bonds will be 7%. a. What is the price of the coupon bond? b. What is the expected annualized holding period return on the bond? c. What must be the yield on two-year zero-coupon bonds by the principle of noarbitrage