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2. The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1,2, 3 are given below Time to Maturity 1

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2. The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1,2, 3 are given below Time to Maturity 1 Price 961.54 890.00 816.30 a) what's the price of a 3-year 6% annual coupon bond with face value equal to $1000? (15 points) b) What's the forward rate 21? (10 points)

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