Assume zero-coupon yields on default-free bonds are 4.00% (1 year), 4.30% (2 years), 4.50% (3 years), 4.70% (4 years), 4.80% (5 years). (a) What is the price today of a two-year, default-free bond with a face value of $1000 and an annual coupon rate of 6%? Does this bond trade at a discount, at par, or at a premium? Answer. (b) What is the price of a three-year, default-free bond with a face value of $1000 and an annual coupon rate of 4%? What is the yield to maturity for this bond? Answer. (c) Consider a four-year, default-free bond with annual coupon payments and a face value of $1000 that is issued at par. What is the coupon rate of this bond