Answer: $1181.164
Step-by-step explanation:
Based on the information given in the question, the interest will be:
= $1,000 × 8%
= $1000 × 0.08
= $80
The current bond price will be calculated as:
=[$80(PVIFA 6.12%,15)] + [$1,000(PVIF 6.12%,15)]
= ($80 × 9.63655) + ($1,000 ×0.41024)
= $770.924 + $410.24
= $1181.164
The bond's bond’s market price is $1181.164