Homework Answers
First, let's find the yield to maturity.
N = 20
Coupon payment = 1,000 * 0.07 = 70
PMT = 70
PV = -840
FV = 1,000
CPT I/Y
I/Y = 8.7176134781
The price after 10 years is equal to the present value of the remaining coupon payments.
n = 10
cpn = 70
FV = 1,000
r = 0.087176134781
![1,000 Price = 0.087176134781* | - ( + 0.087176134781)w] + ( + 0.087176134781)in](http://img.homeworklib.com/questions/021752f0-78d6-11ea-9f5e-8d7dce747748.png?x-oss-process=image/resize,w_560)
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