Final answer:
The price of the bond can be calculated using the formula: Price = (Coupon Payment / Current Yield) * 100.
Step-by-step explanation:
The price of a bond can be calculated using the formula:
Price = (Coupon Payment / Current Yield) * 100
Given that the coupon rate of the bond is 9% and the current yield is 8 1/2 % (or 8.5%), we can substitute these values into the formula:
Price = (9% / 8.5%) * 100 = 105.88
Therefore, the price of the bond is approximately $105.88.