Answer:
The Yield to Maturity of the bond is YTM = 3.20%
Explanation:
Mathematically the Yield to Maturity of the bond YTM is as follows
[tex]YTM = \frac{C + \frac{F-P}{n} }{\frac{F+P}{2} }[/tex]
Where C is the amount of payment to be made = $0
P is the price i.e the present value =$3650
F is the face value of the bond=$5000
n is the year of maturity of the bond = 10 years
[tex]YTM = \frac{0+\frac{5000-3650}{10} }{\frac{5000+3650}{2} } * \frac{100}{1}[/tex]
[tex]=3.20[/tex]%
