Assume the​ zero-coupon yields on​ default-free securities are as summarized in the following​ table:   Maturity 1 year 2 years 3 years 4 years 5 years ​Zero-Coupon Yields 4.0% 4.3​% 4.5​% 4.7% 4.8%   What is the price today of a​ two-year, default-free security with a face value of $1,000 and an annual coupon rate of 6%​? Does this bond trade at a​discount, at​ par, or at a​ premium? What is the price today of a​ two-year, default-free security with a face value of $1,000 and an annual coupon rate of 6%​?   The price is $_____. ​(Round to the nearest​ cent.)

Question
Assume the​ zero-coupon yields on​ default-free securities are as summarized in the following​ table:
 
Maturity
1 year
2 years
3 years
4 years
5 years
​Zero-Coupon Yields
4.0%
4.3​%
4.5​%
4.7%
4.8%
 
What is the price today of a​ two-year, default-free security with a face value of $1,000 and an annual coupon rate of 6%​? Does this bond trade at a​discount, at​ par, or at a​ premium?
What is the price today of a​ two-year, default-free security with a face value of $1,000 and an annual coupon rate of 6%​?
 
The price is $_____. ​(Round to the nearest​ cent.)
 

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