John is planning to invest $10,000 in a bond that pays an annual coupon rate of 5% for a period of 5 years. The bond has a face value of $10,000 and is currently selling at $9,500. If John plans to hold the bond until maturity, what will be his yield to maturity (YTM)?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The first step in calculating the YTM i... View the full answer