A 3-year bond offers a 10% coupon rate with interest paid annually. Assuming the follow- ing sequence of spot rates, the price of the bond is closest to: $\begin{array} { l c }
\text { Time-to-Maturity } & \text { Spot Rates } \
\hline 1 \text { year } & 8.0 \% \
2 \text { years } & 9.0 \% \
3 \text { years } & 9.5 \% \
\hline
\end{array}$

Question

A 3-year bond offers a 10% coupon rate with interest paid annually. Assuming the follow- ing sequence of spot rates, the price of the bond is closest to: $\begin{array} { l c } 
\text { Time-to-Maturity } & \text { Spot Rates } \
\hline 1 \text { year } & 8.0 \% \
2 \text { years } & 9.0 \% \
3 \text { years } & 9.5 \% \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of A 3-year bond offers a 10% coupon rate with interest paid annually. Assuming the follow- ing sequence of spot rates, the price of the bond is closest to: $\begin{array} { l c } 
\text { Time-to-Maturity } & \text { Spot Rates } \
\hline 1 \text { year } & 8.0 \% \
2 \text { years } & 9.0 \% \
3 \text { years } & 9.5 \% \
\hline
\end{array}$

A 3-Year Bond Offers a 10% Coupon Rate with Interest