The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond

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The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond are $98.87, $100, $101.44, and $106.88, respectively. All bonds pay coupons annually and have a par value of $100. What’s the price of a 4-year $100-par bond paying 2% annual coupons, to the nearest dollar?

98
99
100
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Posted Date: Nov 01, 2021 01:52 AM

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The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond

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