A treasury bond has the following characteristics:

Principal $1000

Term to maturity: 20 years

Coupon rate : 8%

Semiannual payments.

Calculate the price of the bond if the stated annual percentage rate (compounded annually) is

(a) 8 percent;

(b) 10 percent;

(c) 6 percnet;

I attaced files with the answer and solution.

But I don't understand the "a 40|8" . How can I calculate this?

I don't understand :( Please check the file and explain the process. Thank you so much.