Assume the zero-coupon yields on default-free securities are as summarized in the following table:

Maturity	1 year	2 years	3 years	4 years	5 years
Zero-Coupon Yields	6.70%	7.20%	7.40%	7.70%	7.80%

What is the price of a three-year, default-free security with a face value of $1,000

and an annual coupon rate of 5%? What is the yield to maturity for this bond?

The price is

$937.94