Assume you have a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 8% coupon rate and pays the $80 coupon once per year. The third has a 10% coupon rate and pays the $100 coupon once per year. Assume that all bonds are compounded annually. Required: a. If all three bonds are now priced to yield 8% to maturity, what are their prices? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero Current prices $ 8% Coupon 463.19 $ 10% Coupon 1,000.00 $ 1,134.20 b. If you expect their yields to maturity to be 8% at the beginning of next year, what will their prices be then? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 8% Coupon Price one year from now $ 500.00 $ 1,000.00 10% Coupon

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