Bond Prices and Interest Rate Changes A 7.0 percent coupon bond with semi-annual coupon payments, 20 years left to maturity and $1,000 face value,...

3.Bond Prices and Interest Rate Changes2 points

After finding the solution, I am confused as to how the numbers worked out as such:

Current bond price:

N=20*2 = 40

I=7%/2 = 3.5%

PMT=3.5*1000 = 35

FV=1000

(this all makes sense so far, but I don't get how the answer is the following)

CPT PV = -948.62

In the same way, I understand how the following makes sense:

N=38

I=4%

PMT=35

FV=1000

but how is the answer:

CPT PV = -903.16

I've calculated this a dozen times and keep getting -1500.40 and -1396.61 respectively. Please help me understand. Thank you!