The current term structure on zero coupon US treasuries is a follows:

Maturity (yrs)	YTM (%)
1	7
2	8
3	8.5

If today the US issues a 2-year coupon bond paying 9% annual coupons, what price will the bond sell for? (assume $1000 face value)

Group of answer choices

$101.86

$97.95

$102.56

$102.96

Using the same information as in Question 6 above, what will the YTM on the new 2-year bond be?

Group of answer choices

7.96%

6.74%

5.67%

5.26%