Problem:
A bond's market price is $875. It has a $1,000 par value, will mature in 8 years, and has a coupon interest rate of 12% annual interest, but makes its interest payments semiannually.
Required:
Question: What is the bond's yield to maturity if it matures in 8 years? 16 years? 4 years?
Note: Please describe comprehensively and provide step by step solution.