A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14% coupon,

Question:

A $1,000 bond sells for $1,216. It matures in 20 years, has a 14% coupon, pays interest semiannually, and can be called in 5 years at a price of $1,100. What is the bond's YTM?
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...