Problem: A 25-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8%.
a. What is the bond's yield to maturity if the bond is selling for $1,010?
b. What is the bond's yield to maturity if the bond is selling for $1,000?
c. What is the bond's yield to maturity if the bond is selling for $1,210?