Question 2 (Bond pricing) Suppose a 3-year zero coupon bond with face value 21 has prica ED.7, a 2 -year zerscoupon bond with face value {1 has price 80.8, and a 1 -year bond with face value 22 has price 21.8. Assume all these bonds are issued by the same concany and thus have the same risk profle. a) Bases on this information, is the yield curve upward or downward sloping? Explain. (5 Marks) b) What would you expect to be the current price of a 3-year bond with fece value 1, which pays annual coupon of 0.2 ? (5 Marks) c) What does the expectation hypothesis predict about the expected one-year rate in one year's time? (5 Marks) d) Suppose after a year, the one-year spot rate is 12%6 and the one-year forward rate for the third year is 14%. What would have been the hoiding period return for holding the 3-year bond for the first year