In order to find the rate on debt, I am given the following information:
"Outstanding 20-year annual pay 6% coupon bonds selling for $894."
I realize that we need to plug this into the calculator, but I need to know the future value and the payment, neither of which is given. The answer says that you plug in: [FV] = 1000
[PMT] = 60
But gives no explanation as to why you do so. Do you just assume that the future value is a number close to the PV rounded to the nearest hundred?