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Suppose the current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a two-year bond that

Suppose the current zero-coupon yield curve for risk-free bonds is as follows:

What is the price per $100 face value of a two-year bond that pays a 5% annual coupon?

A five-year bond that pays a 6.05% annual coupon is likely to trade at a DISCOUNTPREMIUMPAR. Circle one option and EXPLAIN why.

Maturity (years) YTM 1 2 3 4 5 5.00% 5.50% 5.75% 5.95% 6.05%

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