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

4.00

%

4.30

%

4.50

%

4.70

%

4.80

%

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

$ 1 comma 000

and an annual coupon rate of

4 %

?

What is the yield to maturity for this bond?

How do I solve this?