1. A corporate bond has the face value of $1,000, the remaining maturity of two years and pays interest semi-annually. Today is January 25, 2021, and this bond paid interest this morning. Suppose the annual coupon rate denoted by c, and the annual yield-to-maturity of the bond, denoted by k, are determined as follows: (where x is the annualized yield on 10-year GOC bond at the beginning of each payment period) c=x +.025, and k=x+.03 (i) Today the annualized yield on 10-year GOC bond is 2.5%, while on July 25, 2021, January 25, 2022 and July 25, 2022, it is expected to be 3%, 4% and 4.5% respectively. Find the current price of the bond