Answer:
So yield to maturity will be 11.1 %
Explanation:
We have given final value FV = $1000
Current price = $900
Time is given t = 1 year
We have to find the rate of interest
Future value is given by
[tex]A=P(1+\frac{r}{100})^n[/tex], here A is future value and P is current price
So [tex]1000=900(1+\frac{r}{100})^1[/tex]
[tex]1.111=1+0.01r[/tex]
[tex]0.111=0.01r[/tex]
r = 11.1 %
