What should the purchase price of a 3-year zero-coupon bond be if it is purchased today and has face value of $1,000? $\begin{array}{lr}
&\text { 1-Year } \
&\text { Forward }\
\text { Year } & \text { Rate } \
1 & 4.6 \% \
2 & 4.9 \% \
3 & 5.2 \% \
4 & 5.5 \% \
5 & 6.8 \%
\end{array}$
A) $887.42
B) $871.12
C) $879.54
D) $856.02
E) $866.32

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The Answer of What should the purchase price of a 3-year zero-coupon bond be if it is purchased today and has face value of $1,000? $\begin{array}{lr}
&\text { 1-Year } \
&\text { Forward }\
\text { Year } & \text { Rate } \
1 & 4.6 \% \
2 & 4.9 \% \
3 & 5.2 \% \
4 & 5.5 \% \
5 & 6.8 \%
\end{array}$
A) $887.42
B) $871.12
C) $879.54
D) $856.02
E) $866.32

What Should the Purchase Price of a 3-Year Zero-Coupon Bond