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

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 3% ? 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 3% ? Does this bond trade at a discount, at par, or at a premium? Note: Assume annual compounding