The present value or the price of this bond will be $ 901.81. I have calculated it with a financial calculator. If you also want to calculate it manually then given below is the solution:

PV = Sum of cash flows

(1 + I)

PV = 0.07*1000 + 0.07*1000 + ... 1000

(1 + 0.08)

PV = $ 901.81

PV = Sum of cash flows

(1 + I)

^{n}PV = 0.07*1000 + 0.07*1000 + ... 1000

(1 + 0.08)

^{1}(1 + 0.08)^{2}(1 + 0.08)^{20}PV = $ 901.81