What is the yield to maturity (ytm) on a simple loan for $2 comma 0002,000 that requires a repayment of $10 comma 00010,000 in five years' time?

The YTM is 37.97%.

YTM or yield-to -maturity is that discount rate that equates the purchase price pr present value with the value that is to be received after a fixed time period (Future Price).

We use the following formula to find the YTM

Substituting the values in the equation above we get,

We need to solve for r in the equation above to arrive at the YTM

Taking the 5th root on both sides we get,

answer; coefficient of correlation;