A corporate bond has a face value of $1000 and an annual coupon interest rate of 7%.

Question:

A corporate bond has a face value of $1000 and an annual coupon interest rate of 7%. Interest is paid annually. Of the original 20 years to maturity, only 10 years of the life of the bond remain. The current market price of the bond is $872. To the nearest whole percent, what is the YTM of the bond today?

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...