Step 1: Solve the differential equation.
The given differential equation is:
\[
\frac{d^2y}{dx^2} - 2 \frac{dy}{dx} + y = 0
\]
The characteristic equation is:
\[
r^2 - 2r + 1 = 0
\]
Solving this gives \(r = 1\), so the solution to the differential equation is:
\[
y = (C_1 + C_2x)e^x
\]
Step 2: Apply the boundary conditions.
Using \(y = 0\) at \(x = 0\), we find \(C_1 = 0\). Using \(\frac{dy}{dx} = 1\) at \(x = 0\), we find \(C_2 = 1\). So the solution is:
\[
y = xe^x
\]
Step 3: Find \(y\) at \(x = \frac{1}{2}\).
Substitute \(x = \frac{1}{2}\) into the solution:
\[
y\left( \frac{1}{2} \right) = \frac{1}{2}e^{1/2} = \frac{\sqrt{e}}{2}
\]