A step-down bond has a face value of $100 and 2 years to maturity. The annual coupon rate for the immediate next two coupons is 6% p.a. and the annual coupon rate for the final two coupons is 3% p.a. Coupons are paid semi-annually. The following table shows some relevant spot rates. What is the fair price of the bond? Choose the closest answer.

Year	Spot rate
0.5	5% p.a.
1	5% p.a.
1.5	4.6% p.a.
2	4.5% p.a.

	A.	100.04
	B.	101.87
	C.	108.11
	D.	105.96