Hello, I am looking at a question you had answered for another student:

he Yield to Maturity (YTM) on a bond is the interest rate you earn onyour investment if interestrates dont change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).

Suppose that today you buy a 5.6% annual coupon bond for $930. The bond has 10years to maturity. What rate of return do you expect to earn on your investment?

Two years from now, the YTM on your bond has declined by 1%, and you decide to sell. What price will your bond sell for? What is the HPY on your investment? Compare thisyieldto the YTM when you first bought the bond. Why are they different?

I am just wondering how you came up with 1000 for the future value. I'm still a little confused. And the 930 became negative in the problem because you were using excel correct?