# Math

posted by
**Robbie** on
.

he current term-structure of spot interest rates for safe zero-coupon bonds is as follows:

Maturity, in years

Interest rate(r)

1 8%

2 10%

3 11%

4 12%

5 13%

There is a safe bond B which has 4 years before maturity and pays a coupon

of 12% at regular annual intervals and a face value of $100 at maturity.

(a) What will be the current price of bond B?