Final answer:
The question is about calculating the Yield-to-Maturity of a bond. The Yield-to-Maturity is the total return expected if the bond is held until it matures and involves equating the present value of all future cash flows to the bond's current market price. The data provided does not allow for a direct calculation, and generally, YTM is calculated using financial calculators or software.
Step-by-step explanation:
The subject of the question corresponds to the field of Finance, which is a branch of Business studies. Specifically, the question relates to the concept of Yield-to-Maturity (YTM) on a coupon bond, a key concept in the valuation of fixed-income securities. YTM is the total return anticipated on a bond if the bond is held until it matures. Calculating YTM involves finding the discount rate at which the present value of all future cash flows (coupon payments and face value at maturity) equals the current market price of the bond.
Unfortunately, the provided information does not give a direct way to calculate the YTM of the specific bond with a face value of $1,000, a coupon rate of 4.65%, and a maturity of sixteen years that is trading at $914.39. Usually, bond YTM calculations are done using numerical methods like trial and error or with financial calculators and software designed to find the rate that equates the present value of the bond's cash flows to the current market price.
As for the example provided where the investor will receive the $1,000 face value, plus $80 for the last year's interest payment (yield of 12%), this does not pertain directly to the bond in question. It is, however, a simplified illustration showing how yields can change when the market price of a bond differs from its face value. Typically, when market interest rates rise, existing bonds with lower interest rates fall in value, and vice versa.