Answer:
8.47%
Explanation:
annual coupon = 6.25% x $1,000 = $62.50
present value = -$912.34
cash flow 0 = -$912.34
cash flow 1 = $62.50
cash flow 2 = $62.50
cash flow 3 = $62.50
cash flow 4 = $62.50
cash flow 5 = $1,062.50
using an excel spreadsheet and the IRR function we can determine the yield to maturity = 8.47%
