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	3.53.5%	4.04.0%	4.34.3%	4.54.5%	4.94.9%

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 3%?

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 3%?

The price is $. (Round to the nearest cent.)