Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?

Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?
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1 Answer

Answer :

The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.
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