Year 1 2 3 Spot Rate 4% 4.2% 4.5% 3.1 Homework - Unanswered o Suppose you want to value a three year coupon bond with annual coupon payments. The face value is $1000 and the coupon rate is 3%. What is the fair value of this coupon bond if spot yields discount rates) are as in the Table atave? Select an answer and submit For weyboard navigation, use the up/down arrow keys to select an answer a a $929.06 b $949.06 C $959.06 d $979.06 e None of the above. Question 4: Yield Curve from Prices of Zero-coupon Bonds Suppose you observe the following prices of default-free zero coupon bonds, each with a face value of $100. . 1 Year 2 Year 3 Year Maturity Zero coupon bond price $95.24 $88.99 $79.38 4.1 Homework Unanswered Compute the yield curve, i.e. find the spot zero cougar) rates for 1 year, 2 years, and 2 years. Select an answer and submit. For keyboard navigation, use the up/down arroys ta select an answer a a 1-year spot rate=5,2 year spot rate = 54, 3 year spot rate = 8% b 1 year spot rate=6N, 2 year spot rate=6m, 3 year spat rate=4 c 1-year spot rate = 19, 2year spot rate 3,3 year spot rate = 84 d 1 year spot rate= 99,2 year spot rate=94, 3 year spot rate = 89 None of the above. e 4.2 Homework. Uranowered What is the fair market price of a three-year coupon bond with a $1000 face value and 5 coupon paid annually? Sclect an answer and submit. For keyboard navigation, use the up down arrow keys to select an answer. $896.14 b $900.25 c $911.55 $ d $925.64 e None of the above