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Assume the zero-coupon yields on default-free securities are as summarized in the following table: (Click on the following icon in order to copy its contents

image text in transcribed Assume the zero-coupon yields on default-free securities are as summarized in the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) ZN 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 4% ? 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 4% ? The price is $. (Round to the nearest cent.) Does this bond trade at a discount, at par, or at a premium? (Select the best choice below.)

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