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Problem #3: The function s(t) = 0.065 + 0.004t gives the effective annual rate of a zero coupon bond of maturity t, with t in

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Problem #3: The function s(t) = 0.065 + 0.004t gives the effective annual rate of a zero coupon bond of maturity t, with t in years. Find the price of a 2 year coupon bond with semiannual coupons of 7.5% and a face/redemption value of $800,000. (A) 708469.76 (B) 805079.27 (C) 756774.51 (D) 732622.14 (E) 780926.89 Problem #3: Select

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