QUESTION 3 Microsoft's CFO, Peter Klein, is asking your advice with respect to the purchase of one-year dollar-denominated zero coupon bonds to be issued by the Republic of Iceland on March 31. How much would you suggest Microsoft to bid for a bond with a redemption (par) value of $1007 Standard & Poor's and Fitch recently assigned the Republic of Iceland a sovereign credit rating of BBB. The yield to maturity for bonds rated BBB-and denominated in Icelandic krnas (ISK) is 2% (per year). The yield to maturity for bonds rated BBB- and denominated in U.S. dollars ($) is 2.82% (per year) a. ISK98.04 b. ISK97.26 C. $97.26 d. 998.04