The Florida Investment Fund buys 88 bonds of the Gator Corporation through a broker. The bonds pay 7 percent annual interest. The yield to maturity (market rate of interest) is 10 percent. The bonds have a 25-year maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Using an assumption of semiannual interest payments:

Compute the price of a bond.