Alice Kitchen's, Inc. bonds have a 10% coupon rate with semiannual coupon payments. They have 12 and 1/2 years tof maturity and a par value of $1,000. Compute the value of Alice's bonds if investors required rate of return is 8%.

1. $1,156.22

2. $1,239.33

3. $1,137.10

4. $1,084.44