ou are given the following information about bond A, B, and C:

Bond

Type

Face Value

Coupon

Maturity

Price

A

Zero Coupon Bond

$1,000

-

1 year

$925.93

B

Level Coupon Bond

$1,000

5%

2 years

$953.21

C

Level Coupon Bond

$1,000

10%

3 years

$1,071.88

1. Assuming that all the bonds make only annual payments, what spot rates

,

, are

imbedded in these prices?

2. What is the price of a 3

-year level coupon bond with a face value of $1,000 and a 6%

annual coupon rate?