In the spring of 1992 it became apparent that Olympia & York (O&Y) would have serious difficulty

Question:

In the spring of 1992 it became apparent that Olympia & York (O&Y) would have serious difficulty in servicing its debt. Because of this risk, investors were heavily discounting O&Y’s bond issues. On April 30, 1992 an Olympia & York bond issue, paying an 11.25% rate and maturing on October 31, 1998, traded at $761.50 (per $1000 of face value). (This was at a time when Government of Canada bonds with a similar and date were trading at a premium of about 10% above par.) If O&Y had managed to make the contractual payments on these bonds, what yield to would investors who purchased those bonds on April 30, 1992 have realized?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...