Pamela bought a bond for $926 with a face value of $1,000 and an annual coupon of

Question:

Pamela bought a bond for $926 with a face value of $1,000 and an annual coupon of $50. If the bond matures in 18 years, what is her yield to maturity?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... 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...