To value a bond using a binomial interest rate tree, we work backwards from the final period:

Year 3:

• Final coupon + principal = 100 + 5 = 105

Year 2:

• Upper node: Value = [105/(1 + 9.7199%) + 105/(1 + 9.7199%)]/2 + 5 = 95.70 + 5 = 100.70
• Middle node: Value = [105/(1 + 7.2007%) + 105/(1 + 7.2007%)]/2 + 5 = 97.93 + 5 = 102.93
• Lower node: Value = [105/(1 + 5.3344%) + 105/(1 + 5.3344%)]/2 + 5 = 99.49 + 5 = 104.49

Year 1:

• Upper node: Value = [100.70/(1 + 5.2273%) + 102.93/(1 + 5.2273%)]/2 + 5 = 96.62 + 5 = 101.62
• Lower node: Value = [102.93/(1 + 3.8724%) + 104.49/(1 + 3.8724%)]/2 + 5 = 100.13 + 5 = 105.13

Year 0:

• Value = [101.62/(1 + 2.5000%) + 105.13/(1 + 2.5000%)]/2 = 99.14 + 102.57 = 201.71/2 = 100.855

After rounding, the value is closest to 100.83, which corresponds to option C.