$($June $2018$ catch$-$up exam$)$ A zero coupon bond at $1-$year notes $98\mathrm{.}04.$ The forward interest

rate of $1$ year within a year is $5\%.$ A zero$-$coupon interest bond at $3$ years notes $84\mathrm{.}99.$ A $3-$

year bond with a coupon of $4\mathrm{.}5\%$ has a price of $102.$ The yield to maturity is $4\mathrm{.}25\%.$ Calculate

whether this bond is correct, over$-$ or undervalued.