Answer:
yield to maturity is equal to 14.00%
Explanation:
given,
time = 3 years
coupon rate = 11% = 0.11
price = $930.35
take par value = $1000 yield to
current price = 110 × PVAF + 100 × PVF
$930.35 = 110 × PVAF + 100 × PVF
using trial and error method
13% current price = 110 × 2.3612 + 1000 × 0.69305 = $ 952 . 782
14 % current price = 110 × 2.3216 + 1000 × 0.67497 = $ 930 . 346
= $ 930 . 35
hence, correct answer is 14.00%
