The formula is:
Bond Value = C * (1 - (1 + r)^-n) / r + FV / (1 + r)^n
where C is the annual coupon payment, r is the yield to maturity, n is the number of years to maturity, and FV is the face value of the bond.
In this case, C = 1000 * 8% = 80, r = 7%, n = 5,
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