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How do I get $980.14? All bonds considered below have a face value of $1000. The two-year zero-coupon bond is trading at $935.86 while the

How do I get $980.14?

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All bonds considered below have a face value of $1000. The two-year zero-coupon bond is trading at $935.86 while the two-year bond with annual coupon rate 2% is trading at $974.18. In the absence of arbitrage, what is the fair price of the one-year zero-coupon bond? $1019.35 $980.14 $960.54 $931.13

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