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Suppose the spot rates are r - 1 , r 2 2 . The price of one year $ 1 0 , 0 0 0

Suppose the spot rates are r-1,r22. The price of one year $10,000 par valued 8% annual coupon bond is $10178.58 and the price of two years $10,000 par valued 8% annual coupon bond is $9676.42. Computer
(A)0.100295
(B)0.101056
(C)0.101895
(D)0.100195
(E) None of the above
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