Table below presents information on three US Treasury bonds:

Maturity

Coupon Rate

Price (per $100 of Face value)

6 months

1%

99.75

12 months

2%

100.5

18 months

1.5%

98.5

Use this information to answer the following questions:

Suppose that US Treasury plans to issue 5% coupon bonds, which pay semi-annual coupons. The bonds will mature in 18 months. What is the price of these bonds?

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