What is the price (per $1,000 of face value) of a seven-year 8 percent coupon bond issued by the U.S. Treasury? You may assume that the discount rate is 5 percent and that coupons are paid annually at the end of the year.

You look in the Wall Street Journal and find that the price of the bond described in the previous question has a market price of $1,300. Using the goal-seek tool in Excel, find the yield to maturity of the bond.