If the bonds are currently priced at 8700 their yield to

Question

Stellar Corp. recently issued $100 par value deferred coupon bonds, which will make no coupon payments in the next four years. Regular annual coupon payments at a rate of 8% will then be made until the bonds mature at the end of 10 years. If the bonds are currently priced at $87.00, their yield to maturity is closest to:

1. 6.0%.
2. 8.0%.
3. 10.1%.

How to use calculator to calculate this YTM