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Find price of the 5-zero coupon bond

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Reference no: EM132742366

A 5-year zero coupon bond with a $1000 face value is trading at a yield to maturity of 5.60%. You check the yield curve and find the 1 year spot rate is 4.96%, the 2 year spot rate is 4.93%, the 3 year spot rate is 4.64% and the 4 year spot rate is 4.70%.

Assuming that the expectations hypothesis is correct, what will the price of the 5-zero coupon bond be when it has 1 year left to maturity.

Reference no: EM132742366

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