Question $37(1$ point$)$

Consider a two year coupon bond issued today with a face value of $$1,000$ and a

$4\mathrm{.}00\%$ coupon rate. Suppose that yields on zero coupon bonds with terms one and

two are $5\mathrm{.}25\%$ and $6\mathrm{.}75\%$ respectively. What is your best estimate of the price of the

bond next year after the first coupon?

Enter your answer rounded to $2$ decimal places.

Your Answer:

Answer