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2) You know that r1=8.0%,f2=9%, and r3=11% (the subscript indicates the year). What is the price of a 3-year government bond that pays a 10%

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2) You know that r1=8.0%,f2=9%, and r3=11% (the subscript indicates the year). What is the price of a 3-year government bond that pays a 10% annual coupon and has a $1000 face value? A. $908.73 B. $975.56 C. $978.06 D. $981.85 Correct answer: d

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