The yield to maturity(YTM) of a consol with a coupon of $85 and a price of $944.44 is 9%.
Given,
Coupon(C) = $85
Price(P) = $944.44
The yield to maturity (YTM) of a bond represents the percentage rate of return if an investor retains the bond until it matures.
It represents the total of all outstanding coupon payments.
Whereas, the annual interest payment that the bond's owner will get is determined by the coupon rate.
Using the YTM formula,
YTM = C/P
Now, substituting the given values in the above formula we gat,
YTM = $85/$944.44
= 0.09
= 9%
Hence, YTM is 9% for the given question.
Learn more about YTM:
https://brainly.com/question/17151706
#SPJ4
