The current yield curve for risk-free zero-coupon bonds is as follows:

(Round your final answers to 2 decimal places. Enter percentages "as-is", without the % sign, prices without the $ sign.)

a) What are the 1-year forward rates implied by the spot rates? (i.e., f₂, f₃)

f₂ % ? and f₃ % ?

b) If next year, you decide to buy a 2-year zero-coupon bond how much would you need to pay? What will be the YTM offered (next year)? Assume that the expectations hypothesis is correct, and the market expectations are accurate. All Face Values are equal to $1000.

Price $ ? and YTM % ?

c) If you were to buy a 3-year zero-coupon bond today and sell it next year, what would your holding period return be? (Again, assume that expectations theory holds.)

HPR % ?