You are considering buying a 10-year U.S. Treasury bond at the upcoming Treasury auction. Assume that the bond has the following features:
coupon rate: 3.88%, with semi-annual coupon payments
Face value: $1,000
matures in 10 years
In the auction, the annual yield to maturity determined by the auction is 2.51%.
What is the price that you will pay for this bond?
Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do NOT include a minus sign! Do not type the $ symbol.