Annual coupon=1000*7.1%=71
Hence current price=Annual coupon*Present value of annuity factor(9.1%,9)+$1000*Present value of discounting factor(9.1%,9)
=71*5.97095096+1000*0.456643463
=$880.58(Approx).
NOTE:
1.Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=71[1-(1.091)^-9]/0.091
=71*5.97095096
2.Present value of discounting factor=1000/1.091^9
=1000*0.456643463
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