Consider the following zero-coupon yields on default-free securities :

Maturity (years)	1	2	3	4	5
Zero-Coupon YTM	5.80%	5.50%	5.20%	5.00%	4.80%

a. What is the price today of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6%? Show all your work.

b. How will a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6% trade? You should be doing a calculation that will determine the type of trade (i.e. premium, discount, par).

C. What is the YTM of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6%? Show all your work.