Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 9.6 percent. The bonds make semiannual payments. If these bonds currently sell for 101 percent of par value, the YTM is

To calculate the Yield to Maturity (YTM) of a bond, you need to use a financial calculator or a software program, as the calculation involves solving for the discount rate that equates the present value of the bond's cash flows to its current market price.

Here's how you can calculate the YTM using a financial calculator or Excel:

1. Determine the bond's cash flows: In this case, the bond has a 18-year maturity and makes semiannual payments. So, you will have a total of 36 cash flows (2 payments per year for 18 years).

2. Calculate the present value of each cash flow: Apply the coupon rate of 9.6% to the face value of the bond and divide it by the number of periods in a year (2) to get the semiannual coupon payment. The final payment will also include the face value of the bond. Discount each cash flow to its present value using the yield to maturity.

3. Calculate the bond's market price: Multiply the semiannual coupon payment by the present value annuity factor, which is calculated using the YTM. Add the present value of the final payment (face value) discounted with the YTM. The sum of these present values will give you the market price of the bond.

4. Solve for the YTM: Using a financial calculator or software, input the market price, cash flows, and solve for the discount rate (YTM) that makes the present value of the bond's cash flows equal to the market price.

Given that the bond currently sells for 101% of par value, the market price is 1.01 times the face value of the bond.

Please note that since specific values for the face value and coupon payment were not given, you would need to use those values to calculate the YTM accurately.