20. The price of a 1-year, zero-coupon, risk-free security with face value $1,000 is $961.54. The price of a 2-year, zero-coupon, risk-free security with face value $1,000 is $890.00. What is the price of a 2-year risk-free bond with face value of $1,000, coupon rate of 5% and annual coupons?

    1. $890.00

    2. $938.08

    3. $981.67

    4. $982.58

    5. None of the above