Exhaust leaking

My 96 Accord is leaking in the middle of the exhaust pipe. It's not a big hole but make big noice. My question is does the leaking affect the performance of my car except it makes lots of noise? Asked honda dealer and they said I have to replace with a new exhaust pipe. Is it worth for me to spend $200 to replace it? If I don't replace it, can my car pass the emission test? Thanks!

For the emission test, I believe they will inspect your exhaust first to make sure there is no leak. So, I suggest you at least apply some easy and temp fix to it before the test.

For replacing it, that's the part I don't like. 99% of the pipe should be still in good condition. Just some area that got rusted out easily, but you have to spend hundreds to replace the whole thing. Unless you have the equipment (torch, etc.), you really don't have many choices. You can ask if any shop is willing to patch it for you (probably not, they want you to replace it so they can make big $$$). There is something called "brazing", you use brass to patch the holes. I have done that to my exhaust pipe 2 years ago in the joint area. Since it's brass, it will last longer than the pipe. You can mention this to the shop.