Burleigh Grimes purchased at par a bond with a face value of $1,000.The bond had five years

Question:

Burleigh Grimes purchased at par a bond with a of $1,000.The bond had five years to and a 10% rate. The bond was called two years later for a price of $1,200, after making its second annual interest payment. Burleigh then reinvested the proceeds in a bond selling at its of $1,000, with three years to and a 7% rate. What was Burleigh's actual yield-to-maturity over the five-year period?
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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...