2. A bond with a face value of $1,000 that matures in 2 years pays a coupon rate of 2.5 % semiannually. The table below summarizes the Treasury zero rates and cash flows for this bond currently provided in the bond market. Coupon Principal Maturity (in years) Zero rate payment 0.5 $25 2.25 % 2.55 % 2.95 % 1 $25 1.5 $25 3.50% $25 S1,000 2 What is this bond's theoretical price? Round your answer to the nearest whole dollar. (10 Points) a. If the bond is currently priced at $990 in the market, would you recommend buying it? (5 Points) b. If the bond is currently priced at $1,100 in the market, would you recommend buying it? (5 Points)