What Should the Purchase Price of a 2-Year Zero-Coupon Bond

Multiple Choice

What should the purchase price of a 2-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) $966.87
B) $911.37
C) $950.21
D) $956.02
E) $945.51