Answer:
7.18% and $951.85
Explanation:
For computing the present value, first we have to compute the ytm which is shown in the attachment below:
Given that
NPER = 8 years
PMT = $1,000 × 6% = $60
Present value = $930
Future value = $1,000
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 7.18%
Now the present value is
Future value = $1,000
Rate of interest = 7.18%
NPER = 8 years - 3 years = 5 years
PMT = $1,000 × 6% = $60
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $951.85
