A zero-coupon bond with maturity 1 year and face value $100 currently sells for 94.34$. A zero coupon bond with maturity 2 years and face value $500 currently sells for 462.25$.

1. Estimate the yield to maturity of the 1-year zero-coupon bond.

2. Estimate the yield to maturity of the 2-year zero-coupon bond.

3. Using the yields you estimated in (1) and (2), price a 2-year coupon bond with F = 1, 000$ and c = 5% (paid annually).

4. Is the yield-to-maturity of the coupon bond above, below or exactly 5%?