Below is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of $1,000 Par...

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Below is a list of prices for zero-coupon bonds of variousmaturities.
Maturity (Years) Price of $1,000 Par Bond(Zero-Coupon)
1 $ 945.80
2 877.23
3 803.34
a. A 4.8% coupon $1,000 par bond pays an annualcoupon and will mature in 3 years. What should the yield tomaturity on the bond be? (Round your answer to 2 decimalplaces.)
b. If at the end of the first year the yieldcurve flattens out at 8.4%, what will be the 1-year holding-periodreturn on the coupon bond? (Round your answer to 2 decimalplaces.)

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Below is a list of prices for zero-coupon bonds of variousmaturities.Maturity (Years)Price of $1,000 Par Bond(Zero-Coupon)1$945.802877.233803.34a. A 4.8% coupon $1,000 par bond pays an annualcoupon and will mature in 3 years. What should the yield tomaturity on the bond be? (Round your answer to 2 decimalplaces.)b. If at the end of the first year the yieldcurve flattens out at 8.4%, what will be the 1-year holding-periodreturn on the coupon bond? (Round your answer to 2 decimalplaces.)

Maturity (Years)	Price of $1,000 Par Bond(Zero-Coupon)
1	$	945.80
2		877.23
3		803.34