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Assume the zero-coupon yields on default-free securities are as summarized in the following table: 2 years 3 years 4 years 5 years Maturity Zero-Coupon YTM,

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Assume the zero-coupon yields on default-free securities are as summarized in the following table: 2 years 3 years 4 years 5 years Maturity Zero-Coupon YTM, 1 year 4.5% 5.0% 5.3% 5.5% 5.7% 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 6%? Does this bond trade at a discount, at par, or at a premium? Note: Assume annual compounding

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