### Computation of price of the bond

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Computation of price of the bond

Consider a bond which pays 7% semi-annually and has 8 years to maturity. The market requires an interest rate of 8% on bonds of this risk. What is this bond\'s price?

A. \$ 942.50

B. \$ 911.52

C. \$ 941.74

D. \$1,064.81

E. None of the above.

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