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A $ 1 , 0 0 0 Face Value Treasury bond with 1 8 months left to maturity has annual coupons of $ 3 2

A $1,000 Face Value Treasury bond with 18 months left to maturity has annual coupons of $32 paid
semi-annually. The Term Structure of Interest shows that the 6 month YTM is 3.2%, the 12 month
YTM is 3.35% and the 18 month YTM is 3.65%.
What is the price of the bond? [Hint: The price of the bond should be the same as the total price of
the STRIPS that can be created from it.]
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