You are considering investing in a BBB-rated corporate bond with a 10-year maturity and a 5% coupon rate (with annual coupons). The face value of a bond is $1,000. Assuming that the bond rating is appropriate given the default risk of the company, that the risk free rate is (a+b)/2 percent. and the default spread for BBB rated corporate bonds is 2.5%. Calculate the price of the bond.