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A two year $100 bond has 2% coupons paid semi-annually (.01 per coupon). If the spot rates are 5.5=0.03, r1=0.035, r1.5=0.0374, r2=0.04 , find the

A two year $100 bond has 2% coupons paid semi-annually (.01 per coupon). If the spot rates are 5.5=0.03, r1=0.035, r1.5=0.0374, r2=0.04 , find the price of the bond.

a. 96.25

b. 96.75

c. 97

d. 96

e. 96.50

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