Treasury spot rates are as follows in today's market:

Maturity (years)	1	2	3
Spot rate	1.8%	2.8%	3.6%

A. One year ago, a 3-year Treasury note ($1,000 face value, 4.3% coupon rate and pays annual coupon) was issued. The security paid out its first coupon yesterday. What is the fair price TODAY of this security? (hints: is this coupon bond still a 3-yr bond as of TODAY?)

B. If the bond is traded at $1,026.2 in the market today,

Check all that apply:

it is a discount bond

it is overpriced

it is a premium bond

it is underpriced