Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $90.37, while a 2-year zero sells at $77.15. 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 9% per year. a. What is the yield to maturity of the 2-year zero?(Do not round intermediate calculations. Round your answers to 3 decimal places.) 2-year zero Yield to Maturity 13.850 % b. What is the yield to maturity of the 2-year coupon bond? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Yield to Maturity 2-year coupon bond c. What is the forward rate for the second year? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Forward rate 17.14% d. If the expectations hypothesis is accepted, what are (1) the expected price of the coupon bond at the end of the first year and (2) the expected holding-period return on the coupon bond over the first year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected price Holding-period return e. Will the expected rate of return be higher or lower if you accept the liquidity preference hypothesis? Higher O Lower Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $90.37, while a 2-year zero sells at $77.15. 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 9% per year. a. What is the yield to maturity of the 2-year zero?(Do not round intermediate calculations. Round your answers to 3 decimal places.) 2-year zero Yield to Maturity 13.850 % b. What is the yield to maturity of the 2-year coupon bond? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Yield to Maturity 2-year coupon bond c. What is the forward rate for the second year? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Forward rate 17.14% d. If the expectations hypothesis is accepted, what are (1) the expected price of the coupon bond at the end of the first year and (2) the expected holding-period return on the coupon bond over the first year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected price Holding-period return e. Will the expected rate of return be higher or lower if you accept the liquidity preference hypothesis? Higher O Lower