Reading 36 EOC 13 seems wrong

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!