Their yield to maturity is 7.17% based on the information from the question above. This problem can be solved by using the yield to maturity formula which stated as YTM = C + ((F-P)/n) / ((F+P)/2) where YTM is the yield to maturity, C is the annual coupon, F is the par value, p is the current bond price, and n is the maturity year. Calculation: 7.17% = 85 + ((1000-1120)/15) / ((1000+1120)/2)
