Question: A 5-year zero coupon bond with a $1000 face value is trading at a yield to maturity of 5.35%. You check the yield curve and

A 5-year zero coupon bond with a $1000 face value is trading at a yield to maturity of 5.35%. You check the yield curve and find the 1 year spot rate is 6.39%, the 2 year spot rate is 5.95%, the 3 year spot rate is 6.54% and the 4 year spot rate is 5.51%. Assuming that the expectations hypothesis is correct, what will the price of the 5-zero coupon bond be when it has 1 year left to maturity.

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