A bond pays a $65 coupon once per year. The bond has a face value of $1,000 and matures in 5 years. Spot rates are as follows. Under the expectations hypothesis, what is the expected price of this bond in two years, just after it has made its 2nd coupon payment?
1-year 2.50% 2-year 3.00% 3-year 3.25% 4-year 3.75% 5-year 4.50%
Group of answer choices 1056.60 1025.46 1028.82 1155.46