Question: Consider a two year coupon bond issued today with a face value of $2,000 and 5% coupon rate. Suppose that yields on zero coupon bonds

Consider a two year coupon bond issued today with a face value of $2,000 and 5% coupon rate. Suppose that yields on zero coupon bonds with terms one and two are 5% and 7% respectively. What is your best estimate of the price of the bond next year after the first coupon? 1) $1942.54 2) $1928.12 3) $1925.93 4) $1843.52 5) $1963.50

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