Question $3$

$2\mathrm{.}5pts$

Calculate the price of a $3\mathrm{.}2$ percent coupon bond with $5$ years left to maturity and a market interest rate $($YTM$)$ of $4\mathrm{.}6$ percent. $($Assume interest payments are semiannual and par value is $$1,000.)$

$$938\mathrm{.}10$

$$912\mathrm{.}70$

$$970\mathrm{.}10$

$$991\mathrm{.}60$