Please answer all question :

The current zero-coupon yield curve for risk-free bonds is as follows:

Maturity (years)	1	2	3	4	5
YTM	4.98 %

5.52 %

5.75 %

5.97 %

6.08 %

What is the price per$ 100 face value of a two-year, zero-coupon, risk-free bond?The price per $ 100

face value of the two-year, zero-coupon, risk-free bond is $

q2 Suppose a seven-year,$ 1 000bond withan8.3 %coupon rate and semiannual coupons is trading with a yield to maturity of6.49 %.

a. Is this bond currently trading at a discount, at par, or at a premium? Explain.

b. If the yield to maturity of the bond rises to7.16 %(APR with semiannual compounding), what price will the bond trade for?

a. Is this bond currently trading at a discount, at par, or at a premium? Explain.(

A.Because the yield to maturity is greater than the coupon rate, the bond is trading at par.

B.Because the yield to maturity is less than the coupon rate, the bond is trading at a discount.

C.Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium.

D.Because the yield to maturity is less than the coupon rate, the bond is trading at a premium.

b. If the yield to maturity of the bond rises to7.16 %(APR with semiannual compounding), what price will the bond trade for?

The new price of the bond is $