Question $5$

Suppose the term structure of interest rates on Feb $10,2023$ was:

You own a US Treasury bond with a face value of $$1000$ and coupon rate of $6\%$ paid semi$-$

annually. The bond is set to mature on Feb $10,2025($i$.$e$.,2$ years from Feb $10,2023).$

If you were to sell this bond on Feb $10,2023,$ how much could you get for you bond?

Answer:

Type one of the following choices: A$,$ B$,$ C$,$ or D$,$ where

$A=$$$1082\mathrm{.}24$

$B=$$$1045\mathrm{.}77$

$C=$$$1024\mathrm{.}81$

$D=$$$977\mathrm{.}74$