What is the price of a 10-year risk-free bond, with a face value of $100, and coupon payments from t = 1 to t = 10 are the following:

Ct = (20%+0.001Oilt 3rt1,1)100

where Oilt is the sport price of a barrel of crude oil at t. Suppose that the swap rate on a 10-year oil swap is $100, meaning that there is a zero-cost swap with the following cash flows from t = 1 to t = 10:

(Oilt 100) N

where N is the notional amount of the swap. Suppose that the price of a 10-year, 7.5% coupon bond with a face value of $100 is $120.