Robbie Barrow just purchased a risk-free US Treasury note having 3 years to maturity and an annual coupon rate of 7.0 percent. Unlike standard US Treasury notes, the coupon/interest payments for this Treasury note are made once each year (that is, coupon payments occur annually rather than semiannually). The annualized yield to maturity for a risk-free zero coupon bond that matures in one year is 1.25 percent. The term structure of interest rates for risk-free zero coupon bonds implies that the annualized forward rate of interest for a one-year period that begins in one year is 2.40 percent, while the forward rate of interest for a twoyear period that begins in one year is 2.80 percent,

a. determine the annualized yield to maturity for a risk-free zero coupon bond maturing in two years

b. determine the annualized yield to maturity for a risk-free zero coupon bond maturing in three years

c. determine the current market price for the 7.0 percent coupon Treasury note

d. determine the annualized yield to maturity for the 7.0 percent coupon Treasury note having 3 years to maturity