11-What is the duration of a three-year bond that pays an annual coupon of 9 percent and has a current yield to maturity of 12 percent? Use $1,000 as the par value. a) 2.589 b) 2.749 c) 2.936 d) 2.672 e) None of the above The next 2 questions are based on the following: Government economists have forecasted one-year T-bill rates for the following five years as follows: Year 1-year rate 1 2.15% 2 3.85% 3 4.50% 4 5.85% 5 6.25% You have liquidity premium 0.45% for the next two years and 0.75% for year 3.0.85% for years 4 and 5. 12-Using the pure expectations theory, what will be the interest rates on a 4-year bond? a) 3.50% b) 4.09% c) 4.95% d) 5.32% e) None of the above