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Russ, thanks for the nice example, it helped me pinpoint something I don't understand. You wrote

A bond has a $10,000 face value and a 7% coupon. The yield-to-maturity (YTM) is 5% and it matures in 5 years.

and then

the only numbers involved in the calculation are the face value, the coupon rate, and the number of years until each payment will be received

Where does the YTM come from? Is it based on the other numbers?
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