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

Maturity (Years)	1 Year	2 Years	3 Years	4 Years	5 Years
Zero Coupon Yields	6.1%	6.6%	6.8%	7.2%	7.4%

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 5%? (Round to the nearest cent)

Does this bond trade at a discount, at par, or at a premium?

Note:Assume annual compounding.