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 2012 to create this portfolio, which is composed of 32 units of instrument A and 39 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 = 4.82% 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 = 4.09% p.a. and Hlne has just received her coupon payment.

a.

$102.0414

b.

$106.1810

c.

$104.1282

d.

$101.7182