Number of periods = 8 * 2 = 16
Rate = 5.4% / 2 = 2.7%
Coupon = (0.035 * 1000) / 2 = 17.5
Current price = Coupon * [1 - 1 / (1 + r)n] / r + FV / (1 + r)n
Current price = 17.5 * [1 - 1 / (1 + 0.027)16] / 0.027 + 1000 / (1 + 0.027)16
Current price = 17.5 * [1 - 0.652939] / 0.027 + 652.93944
Current price = 17.5 * 12.854111 + 652.93944
Current price = $877.89
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