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When spotrates are Z 1 = 4.5%, Z 2 = 5%, Z 3 = 5.75%. The value of a 3 year, $1000, 5% annual coupon

When spotrates are Z1 = 4.5%, Z2 = 5%, Z3 = 5.75%. The value of a 3 year, $1000, 5% annual coupon bond is most likely?

a) 976.43

b) 991.24

c) 1000.00

d) 1002.59

e) 981.07

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