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The term structure of interest rates is currently: r1 = 3.25% r2 = 3.50% r3 = 3.90%. The price today of a three-year risk-free bond

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The term structure of interest rates is currently: r1 = 3.25% r2 = 3.50% r3 = 3.90%. The price today of a three-year risk-free bond with a face value of $1,000 and an annual coupon rate of 4% is closest to: $1,028.61 $1,003.31 $2001.22 O $1,002.78 O $1,028.50

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