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Assume the following continuously compou...

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题目

Assume the following continuously compounded zero rates: 1.0% at 0.5 years; 1.6% at 1.0 year; 1.9% at 1.5 years; and 2.5% at 2.0 years. What is the theoretical price of a bond with a $100 principal that pays coupons at the rate of 2.0% semiannually?

选项

A.$98.03

B.$99.03

C.$100.03

D.$101.03

答案

B

解析

The solution is as follows:
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