Answer:
maturity is around 8.96%
Step-by-step explanation:
The yield to maturity of a bond is the interest rate that equates the bond's price to the sum of its future cash flows, taking into account the present value of those cash flows. To calculate the yield to maturity of a bond, we need to know the bond's coupon rate, the frequency at which the coupon is paid, the bond's face value, and the bond's price.
Given the information provided, we can calculate the yield to maturity using the bond's coupon rate, frequency of payment, face value, and price. Since the bond pays a 12% coupon semi-annually, and the bond's price is $1,100, we can use a financial calculator or a spreadsheet software to solve for the yield to maturity.
For a bond with a face value of $1,000, coupon rate of 12% paid semi-annually, maturity of 10 years, and price of $1,100, the yield to maturity is around 8.96%.