What is the bond price? Face value is $$1,000,$ the term is $10$ years, the coupon rate is $5\%,$ and coupon payments will be made semiannually $($twice a year$).$ Assume the yield to maturity $($discount rate$)$ is $4\%.$

$($Hint: now C is $0\mathrm{.}05*1000/2,$ N is $10*2,$ and y is $0\mathrm{.}04/2-$ everything has to be adjusted to be on a semi$-$annual basis.$)$

Multiple Choice

$$1,000$

$$1,081\mathrm{.}76$

$$1,025\mathrm{.}39$

$$997\mathrm{.}61$