Question $2$

On May $1,2021,$ you are considering to buy a newly$-$issued ABC Company bond, which is quoted as "ABC $7\mathrm{.}1s39"$ in the WSJ and has a par value of $$1,000.$

The company pays coupon interests every $6$ months. If you require a $6\mathrm{.}4\%$ return on this bond, how much would you pay for this bond? $($Hint: Identify annual

coupon rate, years to maturity, and yield to maturity to compute the bond price.$)$

$$1,072\mathrm{.}59$

$$1,075\mathrm{.}26$

$$1,070\mathrm{.}74$

$$1,077\mathrm{.}40$

$$1,074\mathrm{.}18$