i think the answer is $102.30629

QUESTION 3 The yield to maturity on 1-year default-free zero-coupon bonds is currently 8%; the YTM on 2- year default-free zeros is 9%. The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 10.5%. The face value of the bond is $100. Instructions If the liquidity preference theory of the yield curve is correct and the liquidity premium is assumed to be 2%, what is the market expectation of the price that the coupon bond will sell in one year