(YTM) On 1 August 2015, you are offered the following bond:

• Face value: $1,000.00

• Coupon rate: 6%

• Coupon payments: Once a year on 1 August 2002, 2003, . . ., 2012

• Bond price: $1,252.00

• Bond’s face value repaid on last coupon date

a. Use Excel’s IRR function to compute the bond’s yield to maturity (YTM).

b. Use Excel’s XIRR function to compute the bond’s yield to maturity (YTM).