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A Government of Canada 2-year bond has a face value of $1,000 and pays annual coupons of $45. The first coupon is due in one

A Government of Canada 2-year bond has a face value of $1,000 and pays annual coupons of $45. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown below. Term Spot Rate 1-year 6.0% 2-years 1.5% The correct price for the coupon bond today is $ 1,056.79 . (Round to the nearest cent.)

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