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Part $1$

A firm issues$10-$year bonds with a coupon rate of $4\mathrm{.}7\%,$ paid semiannually. The credit spread for$$ this$$ firm's$10-$year debt$$ is$1\mathrm{.}2\%.$ New$10-$year Treasury bonds$($which also make semiannual$$ payments$)$ are being issued at par with a coupon rate of $6\mathrm{.}4\%.$ What should the price of$$ the$$ firm's outstanding$10-$year bonds be if their face value$$ is$$ $$1,000?$

The price should be closest$$ to: