Formula for the soloution of the assignment
P= i(pvifa)kd,n + M(pvif)kd,n
i=coupon rate =10%=1000*10/100=100
M face value or par value= 1000
Kd= 10%= 10/2=n 5% because we have to compute on the semiannually
N= 5year 5*2- 10 year
Coupon rate I = 10% of 1000= 100
M face value= 1000
Putting the value in the formula
P= 100(7.7217) + 1000(.6139)
The answer will be given below
772.1700 + 613.900 = 1386 answer
