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Predicting Yield curve

Hi all, 

While going through CFAI books, I got confused on the explanation. Here is the question and solution: 

Assume a flat yield curve of 6%. A three-year £100 bond is issued at par paying an annual coupon of 6%. What is the bond’s expected return if a trader predicts that the yield curve one year from today will be a flat 7%?

  1. 4.19%

  2. 6.00%

  3. 8.83%

Solution:

A is correct. Expected return will be less than the current yield to maturity of 6% if yields increase to 7%. The expected return of 4.19% is computed as follows:

(6+6/1.07+106/(1+0.07)2)/100−1≈4.19%

So, why we do not discount the first coupon payment ? to my understanding, we should discount the first payment 6 by 1.06.

Could anyone explain me where I got lost ?

Thanks

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