A $1$ year credit default swap $($CDS$)$ on a risky bond pays the face value $$100$ in case the bond defaults in $1$ year. The CDS pays nothing if there is no default.

The probability of default in $1$ year has been calculated as $0\mathrm{.}03.$

The risk free rate is $4\%$ per year.

What is the price of this CDS$?$

$$1\mathrm{.}23$

$$3\mathrm{.}85$

$$ $$2\mathrm{.}88$