ABC Trust has the following bond portfolio:

Bond	Maturity (Years)	Annual Coupon	Face Value	Price per $100 FV
A	1	0	100	92.59
B	2	8 %	100	100.00
C	3	7 %	100	97.42
D	4	10 %	100	106.62
E	5	9 %	100	104.00

TOTAL: 500.63

The coupon bonds in the portfolio all pay coupons annually and all the bond prices are quoted per $100 face value to yield 8%.

a. Explain how the bond portfolio's YTM is calculated.

b. Determine the bond portfolio's YTM using a financial calculator, Excel program, or by trial and error (hint: try YTM = 8%).

c. Does the portfolio's YTM equal the weighted average yield of the bonds? If so, is this always the case?