The yield to maturity on $1-$year zero$-$coupon bonds is currently $4\mathrm{.}5\%$; the YTM on $2-$year zeros is $5\mathrm{.}5\%.$ The Treasury plans to issue a $2-$

year maturity coupon bond, paying coupons once per year with a coupon rate of $6\mathrm{.}5\%.$ The face value of the bond is $$100.$

Required:

a$.$ At what price will the bond sell?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$.$ What will the yield to maturity on the bond be$?$

Note: Do not round intermediate calculations. Round your answer to $3$ decimal places.

c$.$ If the expectations theory of the yield curve is correct, what is the market expectation of the price for which the bond will sell next

year?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

d$.$ Recalculate your answer to part $($c$)$ if you believe in the liquidity preference theory and you believe that the liquidity premium is $2\%.$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.