Answer:
Step-by-step explanation:
Par value = $1000
coupon 8 % = $80
maturity = 4 years
frequency = 2 ( semi annual )
current yield = 8.3505
Bond price = 80 / .083505
= $958
ytm of the bond can be calculated with the help of ytm calculator
It is the discount rate at which the present value of cash flow equals the
bond price .
It turns out to be 9.28 %
ytm = 9.28 %.