John invested $10,000 in a bond that pays an annual coupon rate of 6% and matures in 5 years. The bond is currently trading at a premium of 5% above its face value. Calculate the bond's yield to maturity (YTM) and assess whether the bond is a good investment option.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Step 1 Calculate the coupon payment per ... View the full answer