For Problems 2122, assume zero-coupon yields on default-free securities are as summarized in the following table: Maturity (years) 1 2 3 4 5

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For Problems 21—22, assume zero-coupon yields on default-free securities are as summarized in the following table:Maturity (years) 1 2 3 4 5Zero—coupon YTM 4.6% 5.0% 5.4% 5.8% 6.1% 6-21. Consider a four-year, default-free security with annual coupon payments and aface value of $1000 that is issued at par. What is the coupon rate of this bond? Solve the following equation: 1000+(1+ 0.058)“ (1+0.046)+ (1+0.05) +.3(1+0054) +.4(1+0058) CPN = $57.44 Therefore, the par coupon rate is 5.744%.