Today is 1 July, 2019. Hlne has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Hlne purchased all instruments on 1 July 2013 to create this portfolio, which is composed of 38 units of instrument A and 38 units of instrument B.

• Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029.
• Instrument B is a Treasury bond with a coupon rate of j₂ = 4.96% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022.

Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ = 2.65% p.a. and Hlne has just received her coupon payment.

a.

$108.0324

b.

$105.5524

c.

$119.2885

d.

$106.6196