Correct answer: C. $221.33

Dollar duration is the modified duration multiplied by the bond price:

$$\text{Dollar Duration} = D_{mod} \times P$$

First convert Macaulay duration to modified duration using the bond-equivalent yield of 10%:

$$D_{mod} = \frac{D_{Mac}}{1+y/2} = \frac{2.916}{1.05} \approx 2.777$$

Now compute the bond price for a 3-year, 2% semiannual coupon bond with 10% bond-equivalent yield:

$$P \approx 79.70$$

Therefore:

$$\text{Dollar Duration} \approx 2.777 \times 79.70 \approx 221.33$$

So the correct answer is $221.33.