Assets, Incorporated, plans to issue $$6$ million of bonds with a coupon rate of $7\mathrm{.}4$

percent, a par value of $$1,000,$ semiannual coupons, and $20$ years to maturity. The

current market interest rate on these bonds is $6\mathrm{.}9$ percent. In one year, the interest rate

on the bonds will be either $9$ percent or $5$ percent with equal probability. Assume

investors are risk$-$neutral.

a$.$ If the bonds are noncallable, what is the price of the bonds today? $($Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct.

$$,1,003\mathrm{.}46$