Given that,
Face Value= $1000
Market Price= $1075
Coupan rate= 10%
Number of Years to Mature = 9
Formula for Yeild to Maturity is [C+ (F - P)/n] / (F+P)/2
Where, C= Coupan payment
F= Face value
P= Market Price
n= number of Years to Maturity
By substituting the above details we get,
YTM= [ 100+ (1000-1075)/9 ] / (1000+1075)/2
= 91.667 / 1037.5
= 8.83 %
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