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You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices

You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices for discount, or zero-coupon, bonds with face values of $100:

Maturity

Price

1

95

2

84

3

82

What is the price of the bond today?

(please round your answer to the nearest penny)

With equation if possible, so it is easier to understand..

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