Today is January $1.$ The interest rate is $8\%$ and investors are convinced that it will stay at

$8\%$ for the next $10$ years. A corporate bond comes on the market that for the next $7$ years will pay

$$160$ on December $31$ to whoever owns the bond on that date. On January $1,7$ years from today,

the issuer of the bond will "redeem" the bond by buying it back from the bondholder for $$2,000.$

What should this bond sell for?$11\mathrm{.}6$ Today is January $1.$ The interest rate is $8\%$ and investors are convinced that it will stay at

$8\%$ for the next $10$ years. A corporate bond comes on the market that for the next $7$ years will pay

$$160$ on December $31$ to whoever owns the bond on that date. On January $1,7$ years from today,

the issuer of the bond will "redeem" the bond by buying it back from the bondholder for $$2,000.$

What should this bond sell for?

$($a$)$ $$3,120$

$($b$)$ $$2,160$

$($c$)$ $$1,600$

$($d$)$ $$2,000$

$($e$)$ $$2,780$