YOUR BANK is thinking to issue a regular coupon bond (debenture) with following particulars:

Maturity = 4 years, Coupon rate = 9.000%, Face value = $1,000.00, Coupon payments are annual at the end of year.

 In the fixed-income securities market, the yield curve for a bond with a similar default risk characteristics as one issued by YOUR BANK, is upward-sloping with the following interest rates per annum continuously compounded:

R,0,1 = 8% R,0,2 = 9% R,0,3 = 10% R,0,4 = 10.250% R,0,5 = 11.5%

Where, the notation R is the spot-interest rate (at time t=0) for T year maturity zero-coupon bond. What should be the issue (offer) price per bond of YOUR BANK in US dollars?

A) $1,090.00

B) $1,033.121

C) $1,039.927

D) $1,111.243

E) $897.411

F) $1,000

G) $910.141

H) $981.495

I) $948.307

J) $941.109