I think Im missing a step in these formulas.

With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.85% and will mature on this day 38 years from now. The yield on the bond issue is currently 6.35%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons? The price of the bond today should be $1111.36. (Round to the nearest cent.) What is the price of a 4-year, 8.3% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 6.9%? The price of the bond is $ 873.42. (Round to the nearest cent.)