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Assume the zero-coupon yields on default-free securities are as summarized in the following table: ...

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Finance

Assume the zero-coupon yields on default-free securities are as summarized in the following table:

Maturity

1 year

2 years

3 years

4 years

5 years
Zero-Coupon

YTMn

3.70%

4.10%

4.30%

4.60%

4.80%

Consider four-year, default-free security with annual coupon payments and a face value of $1,000 that is issued at par. What is the coupon rate of this bond? The par coupon rate is __________%. (Do not round until the final answer. Then round to two decimal places.)

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