DRMTH Company just purchased a bond which matures in 5 years. The face value is $1,000 and

Question:

DRMTH Company just purchased a bond which matures in 5 years. The face value is $1,000 and has an 8% coupon. The current yield is 8.21%. What is the yield to maturity (YTM)?

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...