Answer:
The answer is : yield to maturity= 7,14%
Explanation:
Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but it is expressed as an annual rate. It is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate.
The formula to calculate YTM is:
YTM= [tex]n\sqrt{x} (face value/current price) - 1[/tex]
n = number of years to maturity
Face value = bond’s maturity value or par value
Current price = the bond's price today
In this case, we don't have the information regarding face value, but it is customarily $1,000. The face value is is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer.
YTM= [tex]12\sqrt{x} (1000/910)-1[/tex] =7,14%
