Final answer:
The yield to maturity (YTM) on the Olive Rob bonds is approximately 9.26%.
Step-by-step explanation:
The yield to maturity (YTM) for Olive Rob Corp's 8% annual coupon bonds can be calculated using the bond's current price and the expected future cash flows. In this case, the current price of the bond is $897.80. To find the YTM, we need to find the discount rate that equates the present value of the bond's future cash flows to its current price.
Using the formula: $897.80 = $80/(1+r) + $80/(1+r)^2 + ... + $1080/(1+r)^30, we can use trial and error or the internal rate of return (IRR) function on a financial calculator or spreadsheet software to find the appropriate discount rate (YTM). In this case, the YTM is approximately 9.26%.
Therefore, the yield to maturity (YTM) on the Olive Rob bonds is approximately 9.26%.