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A 3-year bond carrying 3.4% annual coupon and $100-par is putable at par 1 year and...

A 3-year bond carrying 3.4% annual coupon and $100-par is putable at par 1 year and 2 years from today. Calculate the value of the putable bond under the forward rate curve below.

1-year spot rate: 1.9%;

1-year spot rate 1 year from now: 2.8%;

1-year spot rate 2 years from now: 4.0%.

Assume annual compounding. Round your answer to 2 decimal places (nearest cent).

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