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 7%?

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

Note: Assume annual compounding.

Maturity	1 Year	2 Years	3 Years	4 Years	5 Years
Zero Coupon Yields	3.0%	3.5%	3.9%	4.1%	4.4%