Write any formula you use, and explain how you arrive at the answer in your own words. Write the name of any financial function you use, the inputs to it, and your input entries so I can understand how you got to your solution.

1- Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000and makes semiannual interest payments of $40. If you require a 10 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Draw a time line for the cashflows for the investment.