From the explanation below, the yield to maturity of the bond is 10.00% which is equal to its annual coupon.
The yield to maturity (YTM) of a bond represents the percentage rate of return if an investor holds the bond until it matures.
When a bond is trading at par, it implies that it is being traded at its face value.
When bonds trade at par, their yields are equal to their coupons.
Investors expect a return equal to the coupon as compensation for the risk of lending money to the bond issuer.
Since the bond is trading at par, it implies that its yield to maturity is equal to its annual coupon of 10%.
Learn more about yield to maturity here: https://brainly.com/question/19132700.
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