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 6.1% 6.5% 6.9% 7.3% 7.5%

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 $