Question: Zero coupon yields Year 1: 6.70% Years 2: 7.10% Year 3: 7.40% Year 4: 7.70% Year 5: 7.90% What is the price of a 5

Zero coupon yields

Year 1: 6.70%

Years 2: 7.10%

Year 3: 7.40%

Year 4: 7.70%

Year 5: 7.90%

What is the price of a 5 year zero coupon default free security (face value of $1,000 )

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