Calculate the value of three year zero coupon bond with a $725 par value when the one year interest rates are expected to stay at 2.0% for next three years and liquidity premiums are as follows: L2 = 0.16%; L3= 0.20%. Coupons are paid annually. A. $689 B. $681 C. $668 D. $697 E. $659 Calculate the value of three year zero coupon bond with a $725 par value when the one year interest rates are expected to stay at 2.0% for next three years and liquidity premiums are as follows: L2 = 0.16%; L3= 0.20%. Coupons are paid annually. A. $689 B. $681 C. $668 D. $697 E. $659