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A corporate bond offers a 7% rate and has exactly 3 years remaining to maturity. Interest is paid annually. The following rates are from the

A corporate bond offers a 7% rate and has exactly 3 years remaining to maturity. Interest is paid annually. The following rates are from the benchmark spot curve.

Time -to -Matuity Spot Rate

1 Year 3.3%

2 Years 4.3%

3 Years 5.1%

The bond is currently trading at a z spread of 203 Bps. What is the value of the bond? Assume par = 100.

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