Answer:
The YTM of the bond is 3%
Explanation:
In order to find the yield to maturity we need to know the bonds present value/price, its future value/par value, years to maturity and its coupon payments. In this question we are told that the PV of the bond is $915, the FV is $1,000 the years to maturity are 3 and it is a discount bond which means there are no coupon payments. In order to calculate the YTM of the bond we will input the following values in a financial calculator.
PV= -915
FV= 1,000
PMT=0
N=3
Compute I=3.00
