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Assume that the following data on U.S. Treasury securities is current: Years to maturity Yield to maturity 1 0.800% 2 0.910% 3 1.300% 4 1.350%

Assume that the following data on U.S. Treasury securities is current:

Years to maturity Yield to maturity

1 0.800%

2 0.910%

3 1.300%

4 1.350%

5 2.400%

7 2.560%

10 3.080%

20 4.200%

You purchase a $1000, zero -coupon, Treasury bond that matures in seven years. Assume the term structure remains constant and that you sell the bond after holding it only four years. For what price can you sell it?

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