Answer:
7.5%
Explanation:
The computation of yield to maturity is shown below:-
Let YTM be i%.
As we know that
Present Value = Face Value ÷ (1 + i)^n
$521.58 = $1,000 ÷ (1 + i)^9
(1 + i)^9 = 1.91725
1 + i = 1.075
i = 7.5%
Therefore for computing the yield to maturity we simply applied the above formula and for more clarification, we have attached the spreadsheet.
