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
Answer: 888.39
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A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells...
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