Question 2. (6 points) You want to buy a 3 year bond with a coupon rate of 20%, annual coupons, and a face value of 1000. You know that 1 year zero coupon bonds trade a yield to maturity of 11.0%, 2 year zero coupon bonds trade at a yield to maturity of 9.9%, and 3 year zero coupon bonds trade at a yield to maturity of 7.9%. (a) What is the price of this 3 year 20% coupon rate bond? (b) What is the yield to maturity on this 3 year 20% coupon rate bond? (c) If you invest in the bond and commit to reinvest the coupons you receive at the current forward rates of 6.38% per year for two years one year from now (f1,3 = 6.38%) and 4.01% for one year two years from now (f2,3 = 4.01%), how much money will you have at the end of the three years? What rate of return would you receive on your investment?