Question: very quickly please 1. The yield to maturity on 1-year zero-coupon bond is currently 9%; the YTM on 2-year zeros is 11%. The Treasury plans

very quickly please 1. The yield to maturity on 1-year zero-coupon

very quickly please

1. The yield to maturity on 1-year zero-coupon bond is currently 9%; the YTM on 2-year zeros is 11%. The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 12%. The face value of the bond is $1.000. (30p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) At what price will the bond sell? b) What will the yield to maturity on the bond be? c) If the expectations theory of the yield curve is correct, what is the market expectation of the price that the bond will sell for the next year

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