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The following table lists the discount factors implied by the government spot curve for the next 4 years: Time (years) Discount factor 1 0.951 2

The following table lists the discount factors implied by the government spot curve for the next 4 years:

Time (years) Discount factor
1 0.951
2 0.875
3 0.802
4 0.714

What would be the price of a 4 year 3.98% coupon bond with a Z spread of 89 bps, per $100 of par value?

Enter answer in percents.

Correct answer: 82.1536

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