What is the price of a 0.75-year floating rate bond that pays a semi-annual coupon equal to the LIBOR plus a 1.0% spread? Use the following information:

I. Price of the 0.25-year zero coupon bond is 99.9.
II. Price of the 0.5-year zero coupon bond is 99.6.
III. There is a 0.75-year coupon bond paying 2% quarterly, and its price is 100.8945.
IV. Three months ago, the 6-month LIBOR was 4%.

The price of a 0.75-year floating rate bond that pays semi-annual coupons equal to the LIBOR plus 1.0% spread is 100.0911.

To calculate this, follow these steps:
1. Determine the discount factors for each cash flow. Using the given zero-coupon bond prices: (I) DF1 = 99.9 / 100 = 0.999 and (II) DF2 = 99.6 / 100 = 0.996.
2. Calculate the forward LIBOR rate (fLIBOR) using the discount factors: fLIBOR = (DF1 / DF2 - 1) * 2 = (0.999 / 0.996 - 1) * 2 = 0.006012.
3. Calculate the cash flows of the floating rate bond: (IV) Coupon = (4% + 1%) / 2 = 2.5%, (III) Principal repayment = 100.8945.
4. Discount the cash flows using the discount factors: PV(Coupon) = 2.5 * DF1 = 2.5 * 0.999 = 2.4975, PV(Principal) = 100.8945 * DF2 = 100.8945 * 0.996 = 100.4936.
5. Sum the present values to find the bond price: 2.4975 + 100.4936 = 100.0911.

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