Question

The coupons are paid annually, and all bonds have a par value of $110. To the nearest 10th of a percent, what are the 1, 2, and 3 year spot rates?
a) 1.2%, 2.5%, 3.8%
b) 2.1%, 3.4%, 4.7%
c) 3.3%, 4.6%, 5.9%
d) 4.0%, 5.2%, 6.4%