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1. The prices of zero-coupon bonds with par value of $1000 and various maturities are: 1 year, $800 2 years, $783.15 3 years, $683.93 4

1. The prices of zero-coupon bonds with par value of $1000 and various maturities are:

1 year, $800

2 years, $783.15

3 years, $683.93

4 years, $592.08

What is the price of a $1000 par-value 4-year bond with a 10% coupon rate paid annually?

2. In the same environment as the previous question, what would the price of the bond be one year from now if implied forward rates remain the same?

(Hi, I am did the first question, but got stuck on the second question. Since both questions are related to each other, I attach bot questions here but you only need to answer question 2. I got $878 for my first question if this helps you better solve the second question. Thank you and I appreciate your help!)

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