what is the YTM? explain briefly.

A bond with a coupon rate of 6%, have a face value of $1000. The market price of bond currently is $930. What is the YTM, if the bond have 4 years to maturity?

Corporate finance

please help me to solve it As shown as it in the example

= Example: A bond with a coupon rate of 5%, has a face value of $100. The market price of a bond currently is $91. What is the YTM, if the bond has 4 years to maturity? The market price of a bond (BV) is = $91 Coupon rate = 5% Coupon value = 5% x $100 = $5 Years to maturity = 4, face value = $100 4 years, 7% interest rate PVIFA = 3.3872 and 4 years, 7% interest rate PVIF= 0.7629 BV = 5 (3.3872) + 100* (0.7629) = $93.22 4 years, 9% interest rate PVIFA=3.2394 and 4 years,9% interest rate PVIF=0.7084 BV = 5 (3.2397) + 100 * (0.7084) = $87.03 Interpolation: = = = = nterpolation: Step 1: Absolute difference: 93.22 - 87.03 = 6.19 Step 2: difference between upper value and market price of bond: 93.22 - 91=2.22 Step 3: Step 2/ Step 1 : 2.22/6.19 = 0.3586 Step 4: Add the result of Step 3 to the lower interest rate:7%+0.3586% = 7.36% YTM = 7.36%