THE TERM STRUCTURE OF INTEREST RATES 355 (a) You are given the following information about two 10-year bonds. Both bonds have face amount 100 and coupons payable semi-annually, with next coupon due in -year Bond I : Coupon rate 4% per year, price 85.12 Bond 2: Coupon rate 10% per year, price 133.34 Find the yield rate for a 10-year zero coupon bond