You just purchased a bond that matures in 5 years The bond has a face value of $1,000 and has an 8 annual coupon The bond has a current yield of 8 21 What is the bonds yield to maturity ...

The problem asks you to solve for the YTM given the following facts N 5 PMT 80 and ...

You just purchased a bond that matures in 5 years. The bond has a face value of

Question:

You just purchased a bond that matures in 5 years. The bond has a of $1,000 and has an 8% annual coupon. The bond has a current yield of 8.21%. What is the bond’s yield to maturity?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...