What is the price of a three-year bond (face value $100), paying 5% coupons, with a yield of 6%? Answer to the nearest cent.
face_value = 100
coupon_rate = 0.05
years_til_maturity = 3
interest_rate = 0.06
coupon = face_value * coupon_rate
present_value = coupon * (1 - (1 + interest_rate) ** (-1 * years_til_maturity)) / interest_rate
discounted_value = face_value / (1 + interest_rate) ** years_til_maturity
bond_price = present_value + discounted_value
round(bond_price, 2)