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	4.4%	4.7%	5.0%	5.3%	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

7%?

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

7%?

The price is

$enter your response here.

(Round to the nearest cent.)