Answer:
Yield to maturity = 4.85%
Explanation:
Municipal dealers are dealers that are registered to buy and sell municipal bonds on behalf of clients.
Yield to maturity is defined as the internal rate of return on a purchased bond
The formula is given as
Yield to maturity = $80 - ($60 premium / 2 years to maturity) ÷
($1,060 + $1,000) / 2
Yield to maturity = ($80 - $30) ÷ 1,030
Yield to maturity = 50 ÷ 1,030 = 0.0485 = 4.85%
