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What is the price today of a? two-year

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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   3.9?%               4.3?%                4.6?%             4.9?%                5.0?%

Problem 1: 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 3%??

Problem 2: Does this bond trade at a? discount, at? par, or at a? premium?  

Reference no: EM133004347

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