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Suppose your friend is debating purchasing a bond that has a $1,000 par value, 13 years to maturity, and a 7% annual coupon. Your frnend

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Suppose your friend is debating purchasing a bond that has a $1,000 par value, 13 years to maturity, and a 7% annual coupon. Your frnend would the to determine the yield to maturity if the bond sells for a price of $980. In order to use your financal calculator to solve for the rate of return on this bond, you need to know the following information: Complete the following table by selecting the appropriate values for N, FV and PMT. Then use your financial calculator to solve for the rate of neturn, and complete the final row of the table. Suppose your friend wants to know what price the bond will be in three years assuming the yeld to maturity remains constant. To calculate what the bond price will be three years from now, the new value for N is years. Becouse this bond is trading at a - you should expect that the bond price three years from now will be $980. Complete the following table by selecting the new appropriate values for N,I/Y, and PMT: Then use your financial calculator to solve for the present value of this cash flow stream, and complete the final row of the table

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