Yield to Maturity Calculation

Investors carefully analyze yield measures to make informed decisions regarding fixed income investments. One common yield measure is the yield to maturity (YTM), which provides insight into the total return expected on a bond if held until maturity.

Consider a corporate bond with a face value of $1,000, a coupon rate of 7% paid annually, and a market price of $1,050. What would be the yield to maturity on this bond?