Answer:
0.92%
Step-by-step explanation:
To find the answer, we use the Yield to Maturity Formula (YTM):
YTM = [C + (F-P)/n] / [(F+P)/2]
Where C is coupon, F is face value or par value, n is years to maturity, and P is price.
now we plug the amounts into the formula
YTM = [90 + (1,000-980)/12] / [(1,000+980)/2]
YTM = 0.0092
YTM = 0.92%
So the YTM of this bond is only 0.92%, which is a very low YTM, typical of very safe securities like government bonds.