Question $12[5$ marks$]$

Suppose that a bond has $10$ years to maturity and pays coupons semiannually. The bond has an annual coupon rate of $5\%$ and a face value of $$1,000.$ The yield to maturity for bonds with similar characteristics is $6\%$ per year in the market.

Find the price of the bond. $($Lecture notes p$\mathrm{.}42$ and p$\mathrm{.}35$ for terminologies$)$

Answer $($show the steps$/$calculation toward your results$)$: