1. A newly issued ten-year option-free bond is valued at par on 1 June 2005. The bond has an annual coupon of 8.0 percent. On 1 June 2008, the bond has a yield to maturity of 7.1 percent. The first coupon is reinvested at 8.0 percent and the second coupon is reinvested at 7.0 percent. The future price of the bond on 1 June 2008 is closest to: