单选题 You are considering the purchase of a three-year annual coupon bond with a par value of $1000 and a coupon rate of 5.5 percent. You have determined that the spot rate for year 1 is 5.2 percent, the spot rate for year two is 5.5 percent, and the spot rate for year three is 5.7 percent. What would you be willing to pay for the bond now?

A、

A. $937.66.
B、

B. $995.06.
C、

C. $1000.00.

【正确答案】 B

【答案解析】The present value of cash flow 1 is: FV=$55, PMT=0, I/Y=5.2%, N=1, and PV=-$52.28. The present value of cash flow 2 is: FV=$55, PMT=0, I/Y=5.5%, N=2, and PV=-$49.42. The present value of cash flow 3 is: FV=$1055, PMT=0, I/Y=5.7%, N=3, and PV=-$893.36. The most you pay for the bond is the sum of: $52.28+$49.42+$893.36=$995.06.