The answer seems to be wrong.
You discount the payment by the interest rate: 102.5/1.028853 = 99.6255
But aren’t you supposed to add the $2.5 coupon payment that would be paid in year 1?
So answer is C. 102.1255
Not B. 92.6255
The answer seems to be wrong.
You discount the payment by the interest rate: 102.5/1.028853 = 99.6255
But aren’t you supposed to add the $2.5 coupon payment that would be paid in year 1?
So answer is C. 102.1255
Not B. 92.6255
I literally logged in to address the same issue. Please help!