Answer:
Yield to maturity 7. 26 percentage
Explanation:
Yield to maturity is given as
[tex]Yield\ to\ maturity =\frac{[Annual\ coupon+\frac{(Face\ value - Present\ value)}{time\ to\ maturity}}{\frac{(Face\ value+Present\ value)}{2}}[/tex]
annual coupon = $85
face value = $1000
present value = $1120
maturity period =15 year
putting all value to get yield to maturity value
=[85+(1000-1120)/15]/[(1000+1120)/2]
=7. 26%.
