From the time line shown below, please derive the general equation for a bonds value:

0 r_d% 1 2 3 4 N

V_B INT INT INT INT INT+V_M

Where V_B = value of the bond,

r_d% = coupon interest rate,

INT = amount paid to the bondholder each year,

N = number of years before the bond matures, and

V_M = par value of the bond.

For a 15-year bond with a face value of $1,000 and a coupon rate of 10%, what is its value after 3 years from the issue date? If an investor purchases the bond at that price, what is the yield to maturity?