Calculating Yield to Maturity of a Bond

Easy Fixed Income Valuation Yield Measures

Consider a bond with a coupon rate of 6% that pays interest semi-annually. The bond has a face value of $1,000 and is currently selling for $950 in the market. What is the yield to maturity (YTM) of this bond? Assume the bond matures in 10 years.

5.98%