Question 666388
PV factor of sum = (1+i)^-n
= (1+9%)^-10
=1.09^-10
= 0.4224

PV factor of annuity = 1 - (1+i)^-n / i
= 1 - (1+9%)^-10 / 9%
= 1 - 0.4224 / 9%
= 0.5775 / 9%
= 6.417

= PV factor of Sum * Par Value + PV factor of annuity * coupon payment
 
= 0.4224 * 1,000 + 6.417 * 80
 
= 422.4 + 513.3
 
= 935.76