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Term (years) 1 2 3 4 5 Zero-coupon YTM 5.00% 6.00% 7.00% 8.00% 9.00% Assume that zero-coupon coupon yields on default-free securities are as summarized

Term (years)	1	2	3	4	5
Zero-coupon YTM	5.00%	6.00%	7.00%	8.00%	9.00%

Assume that zero-coupon coupon yields on default-free securities are as summarized in the uppper table.

Then consider that a 2year, default-free security with a face value of 1,000dollars and an annual coupon rate of 6%.

Q1. Find the no-arbitrage price of this bond.

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