A year ago, you purchased a face value $1,000, 3-year, 5% annual paying, treasury coupon bond at $950. Today, you just cashed in the first coupon but dont want to keep it anymore. Given todays treasury information:

1-year treasury bill, a type of pure discount bond, selling at $980, face value $1000

2-year treasury spot rate 3%

3-year treasury spot rate 4% Find out how much can you sell it for?

Hints: think what are the future cashflows of this coupon bond as of today. It was a 3-year coupon bond a year ago. Is it still a 3-year bond today?