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You observe the current yield curve as follows: r 0 . 5 = 2 . 6 % , r 1 = 2 . 7 %

You observe the current yield curve as follows: r0.5=2.6%, r1=2.7%, r1.5=2.8%, r2=3.0%, r2.5=3.1%, and r3=3.4%. What is the price of a T-note which has a coupon rate of 3%,3 years to maturity, and $1,000 par?
A.
$989.18
B.
$971.56
C.
$1,014.23
D.
$1,002.67

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