Problem #8: Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $94.34, while a 2-year zero sells at $84.99. You are considering the purchase of a 2-year-maturity bond making annual coupon payments. The face value of the bond is $ 100, and the coupon rate is 12% per year. Part C: What is the forward rate for the second year? Part D: According to the expectations hypothesis, what are (1) the expected price of the coupon bond at the end of the first year and (ii) the expected holding-period return on the coupon bond over the first year? Part E: Will the expected rate of return be "higher or lower if you accept the liquidity preference hypothesis