The current 1-year zero coupon yield is 7%, and the 2-year zero coupon yield is 8%. The Treasury plan

It will issue a two-year coupon bond with an annual interest payment of 9% and a face value of $100.

(1) How much will the bond sell for?

(2) What is the yield to maturity of this bond?

(3) If the expectation theory is correct, how much will the bond sell for one year from now?