Given the following spot rate curve:
Spot Rate
1-yr zero = 9.50%
2-yr zero = 8.25%
3-yr zero = 8.00%
4-yr zero = 7.75%
5-yr zero = 7.75%
What will be the market price of a five-year, 9% annual coupon rate bond?
A. $1,047.68.
B. $1,067.78.
C. $1,000.00.
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