Assume the$$ zero$-$coupon yields on$$ default$-$free securities are as summarized in the following$$ table:

Maturity

$1$ year

$2$ years

$3$ years

$4$ years

$5$ years

$$Zero$-$Coupon Yields

$5\mathrm{.}1\%$

$5\mathrm{.}6\%$

$5\mathrm{.}8\%$

$6\mathrm{.}0\%$

$6\mathrm{.}3\%$

What is the price today of a$$ two$-$year, default$-$free security with a face value of $ $1$ comma $000$ and an annual coupon rate of $7\%?$ Does this bond trade at a$$ discount, at$$ par, or at a$$ premium?$$

Note$$: Assume annual compounding.

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Part $1$

What is the price today of a$$ two$-$year, default$-$free security with a face value of $ $1$ comma $000$ and an annual coupon rate of $7\%?$

The price is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$Assume the zero$-$coupon yields on default$-$free securities are as summarized in the following table:

What is the price today of a two$-$year, default$-$free security with a face value of $$1,000$ and an annual coupon rate of

$7\%?$ Does this bond trade at a discount, at par, or at a premium?

Note: Assume annual compounding.

What is the price today of a two$-$year, default$-$free security with a face value of $$1,000$ and an annual coupon rate of

$7\%?$

The price is $

$($Round to the nearest cent.$)$