2. Assume that a 1-year zero-coupon bond with face value R1 000 currently sells at R890.00, while a 2 -year zero sells at R736.50. You are considering the purchase of a 2year maturity bond making annual coupon payments. The face value of the bond is R1 000 and the coupon rate is 6.5% per year. 2.1 Calculate the yield to maturity (YTM) of the 1-year zero. 2.2 Calculate the yield to maturity (YTM) of the 2 -year zero. 2.3 Calculate the yield to maturity (YTM) of the 2-year coupon bond. 2.4 Calculate the forward rate for the second year. ( 2 ) (5) 2.5 If the expectations hypothesis is accepted, determine the expected price of the coupon bond at the end of the first year. 2.6 If the expectations hypothesis is accepted, determine the holding period return on the coupon bond over the first year. 2.7 If you accept the liquidity preference hypothesis, will the expected rate of return by higher or lower? 2.5 If the expectations hypothesis is accepted, determine the expected price of the coupon bond at the end of the first year. (2) 2.6 If the expectations hypothesis is accepted, determine the holding period return on the coupon bond over the first year. 2.7 If you accept the liquidity preference hypothesis, will the expected rate of return by higher or lower