Question: Table 2: Zero Coupon Bond Yield 1 Sep 2021 6 Mth. 1 YR. 2 YR. 3 YR. 4 YR. 5 YR. 0.060% 0.076% 0.200% 0.420%

Table 2: Zero Coupon Bond Yield 1 Sep 2021 6 Mth. 1 YR. 2 YR. 3 YR. 4 YR. 5 YR. 0.060% 0.076%

Table 2: Zero Coupon Bond Yield 1 Sep 2021 6 Mth. 1 YR. 2 YR. 3 YR. 4 YR. 5 YR. 0.060% 0.076% 0.200% 0.420% 0.689% 0.957% 6. Given a 7 year treasury note with a face value of $1000 issued on 1 Sep 2018 with a coupon rate of 0.75%. Using Table 2, above, compute the price of the bond. Assume the zero coupon bonds (strips) have a face value of $100 and that coupons for the priced bond are annual. 7. Using the price computed in question 3, what is the yield to maturity for this bond? 8. Is this bond trading at par, a premium or a discount

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