Question $1(1$ point$)$

Callaghan Motors' bonds have $5$ years remaining to maturity. Interest is paid annually, they have a $$1,000$ par value, the coupon interest rate is $10\mathrm{.}50\%,$ and the yield to maturity is $5\%.$ What is the bond's current market price?

$$1,238\mathrm{.}12$

$$1,856\mathrm{.}47$

$$1,000\mathrm{.}00$

$$794\mathrm{.}14$