You are given the following information with respect to a bond:

$($i$)$ face value: $100$

$($ii$)$ term to maturity: $1\mathrm{.}5$ years

$($iii$)$ annual coupon rate: $5\%$ payable semiannually

You are also given: the six months, one year, and $18$ months nominal annual spot rates

compounded semiannually; they are $6\%,7\%,$ and $8\%$ respectively. Calculate the value of

the bond.

 

 A$.85\mathrm{.}90$ 

B$.92\mathrm{.}44$ 

C$.95\mathrm{.}88$

 D$.102\mathrm{.}87$

 E$.$ smaller than $85$ the professor said that the correct one is $95,88$ but my result is $85,9.$