Today is 1 July 2021. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2015 to create this portfolio and this portfolio is composed of 264 units of instrument A and 306 units of instrument B.

Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030.

Instrument B is a Treasury bond with a coupon rate of j₂ = 3.17% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024.

(b) Calculate the current price of instrument B per $100 face value (today's value). Round your answer to four decimal places. Assume the yield rate is j₂ = 4.17% p.a. and Joan has just received the coupon payment.

a.

99.2341

b.

92.9046

c.

97.2073

d.

97.6491