Question $2$

$2\mathrm{.}5pts$

Calculate the price of a $4\mathrm{.}8$ percent coupon bond with $5$ years left to maturity and a market interest rate $($YTM$)$ of $2\mathrm{.}70$ percent. $($Assume interest payments are annual and par value is $$1,000.)$

$$1,120\mathrm{.}50$

$$1,057\mathrm{.}21$

$$1,097\mathrm{.}00$

$$ $$1,027\mathrm{.}56$