A government has issued 7.2% coupon bonds with semi-annual coupons and 22 years to maturity. If the yield-to-maturity for the bonds is quoted at 7.5% per year (compounded semi-annually), compute the price of a $1,000 face value bond.

A) $967.92

B) $968.15

C) $1,039.71

D) None of the above

Without the use of excel