Suppose you have the following information on U$.$S$.$ treasury bonds $($assume annual coupons paid and a face value of $$100)$:

What do you expect the price of a $2-$year treasury coupon bond with a $5\%$ coupon and $$100$ face value to be $($hint: use the rates from the previous

problem$)?$

Select one:

a$.$ $$96\mathrm{.}39$

b$.$ $$104\mathrm{.}51$

c$.$ $$101\mathrm{.}42$

d$.$ $$106\mathrm{.}48$