Question: 12. A one year zero coupon bond with face value $1.000 sells for $970, a two-year zero bond with a face value of $1,000 aking

12. A one year zero coupon bond with face value $1.000 sells for $970, a two-year zero bond with a face value of $1,000 aking annual nual coupon sells for $950. A three year coupon paying bond m coupon payments is issued today with face value $1,000, maturity of 3 years, an payments of 2% and an initial price of $940. (a) Calculate the one year spot rate (b) Calculate the price of a three-year zero coupon bond with a face value of $1,000

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