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The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a four-year, zero-coupon, risk-free bond?

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The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a four-year, zero-coupon, risk-free bond? The price per $100 face value of the four-year, zerocoupon, risk-free bond is \$ (Round to the nearest cent.) Suppose a seven-year, $1,000 bond with a coupon rate of 7.8% and semiannual coupons is trading with a yield to maturity of 6.68%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.45% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. D. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium

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