-What Should the Purchase Price of a 1-Year Zero Coupon

question 22

Multiple Choice

$$\begin{array} { l | l } \hline \text { Year } & \text { 1-Year Forward Rate } \\\hline 1 & 4.6 \% \\\hline 2 & 4.9 \% \\\hline 3 & 5.2 \% \\\hline 4 & 5.5 \% \\\hline 5 & 5.8 \% \\\hline\end{array}$$
-What should the purchase price of a 1-year zero coupon bond be if it is purchased today and has face value of $1,000?

• A)$966.37
• B)$912.87
• C)$950.21
• D)$956.02
• E)$945.51