1.Consider a coupon bond with a face value of $1,000 with a 4.25% coupon rate (paid annually) and 14 years to maturity.If the current market price of the bond is $925.76, what is the yield-to-maturity?

Here we must solve for the yield-to-maturity of a coupon bond where we know

the market price. The bond has a face value of $1,000, a coupon rate of 4.25%, 14

years to maturity, and a current market price of $925.76. We can write the

valuation formula for the bond as: the answer is 5% but how do you get 5%?