You have been asked to value a three-year, 5% annual pay, bond with the same liquidity and risk as the benchmark spot rates. The face value of the bond is 100. Calculate the arbitrage-free value of the bond given the following spot rate curve: S1 = 3%, S2 = 3.75%, and S3 = 4%. You have been asked to value a three-year, 5% annual pay, bond with the same liquidity and risk as the benchmark spot rates. The face value of the bond is 100. Calculate the arbitrage-free value of the bond given the following spot rate curve: S1 = 3%, S2 = 3.75%, and S3 = 4%