Suppose that a U.S. Treasury note maturing February10, 2009 is purchased with a settlement date of July 31, 2007. The coupon rate is 3% and the maturity value of the position is $1,000. The next coupon date is August 15, 2007. What is the full (dirty) price of this bond given the required yield is 4.0%? (Note that there 181 days in the coupon period and there are 15 days between the settlement date and the next coupon date.)

1000.72

992.72

$989.81

$971.99