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2 years Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year 3 years 4 years 5 years

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2 years Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year 3 years 4 years 5 years Zero-Coupon Yields 4.7% 5.0% 5.3% 5.5% 5.6% 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 8%? Does this bond trade at a discount, at par, or at a premium? Note: Assume annual compounding. . 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 8%? The price is $. (Round to the nearest cent.)

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