Answer: The current price  of bond is=$ 940.05

Working notes for the above answer is as under

Face value = $1000

F=1000

bond maturing in 9 years

t=9

coupon rate of 8 percent, paid annually,m=1

Cr=8%

YTM (interest rate) of 9

R =9%

Formula for current price of the bond is as follow

Bond Value = FV { 1/(1+R/m)mN + (Cr/R) (1 – (1+R/m)-mN)}

We put the figures in the formula as follow

=1000 ( 1/(1+0.09/1)1*9 + (0.08/0.09) (1-(1+0.09/1) -1*9) )

Solving this equation we will get

Bond price = $ 940.05