Problem $2,$ Question $1$

Interest rates are equal to $8\%$ for every maturity. A $3-$year bond with face value $$600$ offers an annual coupon rate of $6\%.$ A $2-$year bond with an annual coupon $$60$ sells at par.

What is the price of the $3-$year coupon bond?

a$.$ $$540\mathrm{.}5$

b$.$ $$461\mathrm{.}1$

c$.$ $$504\mathrm{.}9$

d$.$ $$600$

e$.$ $$630\mathrm{.}9$

f$.$ $$842\mathrm{.}8$

g$.$ $$569\mathrm{.}1$

h$.$ $$655\mathrm{.}6$