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Assume the following information for a given corporate step-up bond: Par = $1000 Current YTM: 4.85% Maturity = 20 years Assigned interest rates: Years 1-7:

Assume the following information for a given corporate step-up bond:

Par = $1000 Current YTM: 4.85% Maturity = 20 years Assigned interest rates: Years 1-7: 4.25% Years 8-15: 5.10% Years 16-20: 5.55% If this bond pays annual coupon payments, what is this bonds current price (NPV)?

Please solve showing me the steps (WITHOUT excel please).

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