P6-19 (similar to)

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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	6.906.90%	7.307.30%	7.707.70%	8.108.10%	8.308.30%

What is the price of a three-year, default-free security with a face value of

$ 1 comma 000$1,000

and an annual coupon rate of

7 %7%?

What is the yield to maturity for this bond?What is the price of a three-year, default-free security with a face value of

$ 1 comma 000$1,000

and an annual coupon rate of

7 %7%?

The price is

$nothing.

(Round to the nearest cent.)