Answer:
8.51%
Explanation:
Annual coupons= ($1000 * 8%)= $80
Approximate YTM = [Annual coupons+(Face value-Present value) / time period] / (Face value+Present value) /2
=[80+(1000-958)/15]/(1000+958)/2
= 80+2.8 / 979
= 82.8/979
= 0.0084576
= 8.4576%
=8.51%(Approx)
Thus, the yield to maturity of this bond is 8.51%.
