1. A pension fund projected that a significant number of its employees would take advantage of an early retirement program the company plans to offer in 5 years. Anticipating the need to fund these pensions, the firm bought zero coupon U.S. Treasury Trust Certificates maturing in 5 years. When these instruments were originally issued, they were 16% coupon, 20-year U.S. Treasury bonds. The stripped Treasuries are currently priced to yield 10%. Their total maturity value is $3013. What is their total cost (price) to firm?