brown enterprises' bonds currently sell for $1,025. They have a 9 year maturity, an annual coupon of $80, and a par value of $1,000. what is their yield to maturity?

7.90%

To calculate the yield to maturity (YTM) of a bond, you can use the following formula:

YTM = (C + ((F - P) / n)) / ((F + P) / 2)

Where:
YTM = Yield to Maturity
C = Annual coupon payment
F = Face value/par value of the bond
P = Purchase price of the bond
n = Number of years to maturity

In this case, the annual coupon payment (C) is $80, the face value (F) is $1,000, the purchase price (P) is $1,025, and the number of years to maturity (n) is 9.

Now, let's substitute the values into the formula and calculate the yield to maturity (YTM):

YTM = (80 + ((1000 - 1025) / 9)) / ((1000 + 1025) / 2)
= (80 + (-25 / 9)) / (2025 / 2)
= (80 - 2.78) / 1012.5
≈ 0.0778

Therefore, the yield to maturity (YTM) for Brown Enterprises' bonds is approximately 0.0778 or 7.78%.