Note: I have the answer but I don't know how was it solved Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion. Currently, investors are demanding a yield of 8.5% on similar bonds. If you own one of these bonds and want to sell it, how much money can you expect to receive on it?

The Answer

Using Financial Calculator

Mode: P/Y=2; C/Y = 2

Input: N I/Y PV PMT FV

Key: 28 8.5 ? 37.5 1000

Output -919.03

My question is: where did they get 28 and 37.5?