Question $1$

$2\mathrm{.}5pts$

Calculate the price of a $2\mathrm{.}6$ percent coupon bond with $5$ years left to maturity and a market interest rate $($YTM$)$ of $7\mathrm{.}40$ percent. $($Assume interest payments are annual and par value is $$1,000.)$

$$810\mathrm{.}67$

$$825\mathrm{.}64$

$$805\mathrm{.}28$

$$836\mathrm{.}50$