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3) Smith purchases a 20 year, 8%, $1000 face value bond with a yield rate of...

3) Smith purchases a 20 year, 8%, $1000 face value bond with a yield rate of 10%. After the 10th coupon he sells the bond. If the new buyer keeps the bond until maturity (at which time she will receive the face value redemption and her last coupon) and her actual semiannual yield rate is also 10% then find her purchase price.

Note: All bonds give semiannual coupons and the face value back at maturity. All rates are nominal semiannual rates.

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