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As an investor you decide to purchase the new issue of COSTCO's new Bond issue. The...

As an investor you decide to purchase the new issue of COSTCO's new Bond issue.

The 7-year maturity semiannual-pay bond has a bullet cash flow structure with a fixed rate coupon of 3.4% and will sell at an initial yield of 2.75%.

Based on this information, what is the value (price) of the bond assuming $100 of par value (closest to)?

$100

$94.6

$104.1

$93.4

$103.8

$
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