You observe the following term structure:

Required:

a) If you believe that the term structure next year will be the same as todays, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.

1-yearzero-couponbond2-yearzero-couponbond3-yearzero-couponbond4-yearzero-couponbondEffectiveAnnualYTM6.7%6.86.97.0 If you believe that the term structure next year will be the same as today's, calculate the return on (i) the 1-year zero and (ii) the 4-year zero. Note: Do not round intermediate calculations. Round your answers to 1 decimal place