1. An analyst collects the following spot rates, stated as annual BEYs:
·6-month spot rate = 6%.
·12-month spot rate = 6.5%.
·18-month spot rate = 7%.
·24-month spot rate = 7.5%.
Given only this information, the price of a 2-year, semiannual-pay, 10% coupon bond with a face value of $1,000 is closest to: