What is the price of the seasoned Treasury Bond that has a 5 percent coupon rate paid semi-annually and has 9 years till maturity and a 1000 dollar face value? Assume that the current market interest rates for the 9-year Treasury bonds is currently 8 percent with semi-annual compounding. Show your work (show the correct equation(s) with the correct numbers in the equation). Provide the correct answer.

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.