iven the following interest rate information:

i.r. (present time) = 3.6%; i.r. (year 1, up) = 4.2%; i.r. (year 1, down) = 3.3%

i.r. (year 2, up-up) = 4.7%; i.r. (year 2, up-down) = 4.1%;

i.r. (year 2, down-down) = 2.9%

What is the current value of a 5.5% annually-paid coupon, 3-year option-free bond with a par value of $1,000?

Question 3 options:

$1,098.57

$988.57

$1,128.57

$1,018.57

$1,048.57