Suppose a $10-$year $$1,0008\mathrm{.}5\%$ bond with semiannual coupon payments offers a $7\mathrm{.}14\%$ yield. What price would an investor pay to buy this bond? If the yield holds constant at $7\mathrm{.}14\%,$ what is the price with exactly five years to maturity? $LO2$ and $LO4$

The price at the time of purchase is $$1,096\mathrm{.}04$ and the price with five years to maturity is $$1,056\mathrm{.}35.$

O The price at the time of purchase is $$986\mathrm{.}37$ and the price with five years to maturity is $$972\mathrm{.}83.$

$$ The price at the time of purchase is $$1,024\mathrm{.}16$ and the price with five years to maturity is $$1,028\mathrm{.}45.$

$$ The price at the time of purchase is $$1,048\mathrm{.}53$ and the price with five years to maturity is $$1,023\mathrm{.}15.$