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Please help Assume the zero-coupon yields on default-free securities are as summarized in the following table: 3 years Maturity Zero-Coupon Yields 1 year 4.0% 2

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Assume the zero-coupon yields on default-free securities are as summarized in the following table: 3 years Maturity Zero-Coupon Yields 1 year 4.0% 2 years 4.3% 4 years 4.7% 5 years 4.5% 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 par. 02. This bond trades at a discount. 3. This bond trades at a premium. 4. Not enough information

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