wncu timIS Tot? (10 pts) 3. An investor is looking at two bonds. The first is a Treasury bond that has an annual coupon rate of 5%, matures in 10 years and a par of $1,000. The second is zero-coupon bond with a 3% yield to maturity that matures in 10 years. The market rate of interest is currently at 3%. a) Compute the current price of both bonds? (10 pts) b) Interest rates are forecast to fall by 50 basis points (0.5%) over the next year. Compute the rate of return on the two bonds? (15 pts) mus TIca UWned this lot? (10 pts) 3. An investor is looking at two bonds. The first is a Treasury bond that has an annual coupon rate of 5%, matures in 10 years and a par of $1,000. The second is zero-coupon bond with a 3% yield to maturity that matures in 10 years. The market rate of interest is currently at 3%. a) Compute the