Problem:
Consider a bond which pays 8% semiannually and has 8 years to maturity. The market requires an interest rate of 10% on bonds of this risk.
Required:
Question: What is this bond's price?
A. $530.58
B. $891.62
C. $893.30
D. $3129.17
E. None of these
Explain in detail and describe all workings out.