Answer:
$89.86
Explanation:
Calculation for the face value of a two year, zero-coupon risk-free bond
Using this formula
P=FV/(1+YTM)^n
Where,
FV represent the face value of $100
YTM represent the Yield to Maturity=5.49%
n represent the number of maturity year= 2 years
Let plug in the formula
P=100/(1+0.0549)^2
P=100/(1.0549)^2
P=100/1.11281401
P=$89.86
Therefore the price of a two-year, zero-coupon, risk-free bond will be $89.86
