You have a bond that pays a $3 coupon in 1 year and a $3 coupon in two years and a $3 coupon in three years.

You have a bond that pays a $3 coupon in 1 year and a $3 coupon in two years and a $3 coupon in three years. It matures in three years with principal repayment of $100 (paid at the same time as the final coupon). Suppose 1-year, 2-year, and 3-year zero coupon bond prices are 0.99, 0.97, and 0.92, respectively. Which is closest to the fair market price of the bond that you have?

a.    $96.00

b.    $98.00

c.     $100.00

d.    $102.00

e.    $104.00