# The price of one-year, two-year, and three-year zero-coupon Treasury bond are currently $980,$860, and $780... ###### Question: The price of one-year, two-year, and three-year zero-coupon Treasury bond are currently$980, $860, and$780 respectively. The government plans to issue a new three-year annual coupon bond with a coupon rate of 4%. The face value of all the bonds are $1,000. What is the fair price of the new coupon bond? (show work) A.$1000

B. $884.80 C.$780

D. $1,040 E.$860

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