Assume the current Treasury yield curve shows that the spot rates for six​ months, one​ year, and one and a half years are 1 %1%​, 1.1 %1.1%​, and 1.3 %1.3%​, all quoted as semiannually compounded APRs. What is the price of a ​$1 comma 0001,000 ​par, 4.25 %4.25% coupon bond maturing in one and a half years​ (the next coupon is exactly six months from​ now)? The price of this bond is ​$nothing.

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