You are considering investing in a 12% coupon rate bond with annual coupons, a three-year maturity and a face value of 1000. You observe the following prices for discount, or zero-coupon, bonds:

Time of maturity	1 year	2 year	3 year
Price	97.85	93.23	86.98

(a) What is the fair market price of the bond? (b) What is the yield to maturity of the bond? (c) What does the market expect the 1 year rate to be in 1 year from now? (d) What does the market expect the 1 year rate to be in 2 years from now? (e) What does the market expect the 2 year rate to be in 1 year from now?