Five years ago, the City of Baltimore sold at par a $1,000 bond with a coupon rate of 8 percent and 20 years to maturity. If this bond pays interest semiannually, what is the value of this bond to an investor who requires an 8 percent rate of return?

Hint: is the bond in discount, in premium, or at par?

Group of answer choices

$607.72

$1,080

$1,000

$692.00