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hello, I need help with the following question. I have highlighted in blue. Assume the zero-coupon yields on default-free securities are as summarized in the

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hello, I need help with the following question. I have highlighted in blue.

image text in transcribed
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 4.0% 4.3% 4.5% 4.7% 4.8% 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 6%? Does this bond trade at a discount, at par, or at a premium? 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 6%? The price is $ . (Round to the nearest cent.) Does this bond trade at a discount, at par, or at a premium? (Select the best choice below.) . O 1. This bond trades at a discount. O 2. This bond trades at a premium. 3. This bond trades at par. O 4. Not enough information. Click to select your answer(s). ? Save for Later 9:35 AM Type here to search O 76% 11/2/2020

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