Answer:
9.84%
Explanation:
For computing the yield to maturity we have to use the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $872
Future value or Face value = $1,000
PMT = 1,000 × 7.5% ÷ 2 = $37.5
NPER = 8 years × 2 = 16 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
After applying this formula the yield to maturity is
= 4.92% ×2
= 9.84%
