We need to calculate the yield to maturity (YTM) for a bond given the current price, coupon rate, par value, and years to maturity. The current price is $908, the coupon rate is 11 percent, the par value is $1,000, and the time to maturity is 8 years. We must find the YTM to the nearest percent.

1. Problem Description

We need to calculate the yield to maturity (YTM) for a bond given the current price, coupon rate, par value, and years to maturity. The current price is $908, the coupon rate is 11 percent, the par value is$1,000, and the time to maturity is 8 years. We must find the YTM to the nearest percent.

2. Solution Steps

We can approximate the YTM using the following formula:

$YTM \approx \frac{C + \frac{FV - PV}{n}}{\frac{FV + PV}{2}}$

where:

$C$ = Annual coupon payment

$FV$ = Face value (par value) of the bond

$PV$ = Current price of the bond

$n$ = Number of years to maturity

First, calculate the annual coupon payment $C$:

$C$ = Coupon rate * Face Value = $0.11 * 1000 =$110$

Now, plug the values into the YTM formula:

$YTM \approx \frac{110 + \frac{1000 - 908}{8}}{\frac{1000 + 908}{2}}$

$YTM \approx \frac{110 + \frac{92}{8}}{\frac{1908}{2}}$

$YTM \approx \frac{110 + 11.5}{954}$

$YTM \approx \frac{121.5}{954}$

$YTM \approx 0.127358$

Convert to percentage:

$YTM \approx 0.127358 * 100 = 12.7358\%$

Round to the nearest percent:

$YTM \approx 13\%$

3. Final Answer

The yield to maturity, to the nearest percent, is 13 percent. So the answer is a. 13 percent.