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Question 4 (3 points) A 5-year zero coupon bond with a $1000 face value is trading at a yield to maturity of 5.75%. You check
Question 4 (3 points) A 5-year zero coupon bond with a $1000 face value is trading at a yield to maturity of 5.75%. You check the yield curve and find the 1 year spot rate is 6.32%, the 2 year spot rate is 5.26%, the 3 year spot rate is 5.05% and the 4 year spot rate is 5.68%. Assuming that the expectations hypothesis is correct, what will the price of the 5-zero coupon bond be when it has 1 year left to maturity. Your answer should be in dollars and cents (ex: 1000.00). Your
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