2. The company decides to follow Winnie the Poohs advice and on 02/01/18, they issue a $2 billion bond offering, with each bond having a face value of $1000. The Series A bonds ($1.2 million of the offering) have a coupon rate of 3% (paid semiannually), and a maturity date of 02/01/23. The Series B bonds ($800 million) have a coupon rate of 4% (paid semiannually), and a maturity date of 02/01/28. No yield

How much would Mr. Smith pay to purchase a Series A bond on the offering 02/01/18?

A. $1000

B. $1003

C. $1030

D. $1150