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A U.S. Government 3-year T-Note has a face value of $100 and pays annual coupons of $6. The first coupon is due in one year.

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A U.S. Government 3-year T-Note has a face value of $100 and pays annual coupons of $6. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown in the table. Term Spot Rate 1-year 5.0% 2-years 6.0% 3-years 7.24% $98.00 $97.00 $99.00 $96.00

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