We need to calculate the yield to maturity (YTM) of a bond given its current price, coupon rate, par value, and time to maturity. The bond has a current price of $908, a coupon rate of 11%, a par value of $1000, and 8 years to maturity. We need to find the YTM to the nearest percent.

1. Problem Description

We need to calculate the yield to maturity (YTM) of a bond given its current price, coupon rate, par value, and time to maturity. The bond has a current price of $908, a coupon rate of 11$1000, and 8 years to maturity. We need to find the YTM to the nearest percent.

2. Solution Steps

The approximate formula for Yield to Maturity (YTM) is:

$YTM = (C + (FV - CV)/N) / ((FV + CV)/2)$

Where:

$C$ = Annual coupon payment

$FV$ = Face Value (Par Value)

$CV$ = Current Value (Current Price)

$N$ = Number of years to maturity

First, calculate the annual coupon payment:

C = \text{Coupon Rate} \times \text{Face Value} = 0.11 \times \1000 = \$110$

Next, plug the values into the YTM formula:

YTM = (\110 + (\1000 - \908)/8) / ((\1000 + \908)/2)$

YTM = (\110 + \92/8) / (\1908/2)$

YTM = (\110 + \11.5) / \954$

YTM = \121.5 / \$954$

$YTM = 0.127358$

Convert the YTM to a percentage and round to the nearest percent:

$YTM = 0.127358 \times 100\% = 12.7358\% \approx 13\%$

3. Final Answer

The yield to maturity is approximately 13 percent.

So, the answer is d. 13 percent.