5. A $1,000 par value 14-year bond with a 10 percent coupon rate recently sold for $965. What is the yield to maturity?

Required to show the following 3 steps for this problem:

(i) Describe and interpret the assumptions related to the problem.

(ii) Apply the appropriate mathematical model to solve the problem. Describing the breakdown of what each variable does for the problem.

(iii) Calculate the correct solution to the problem.