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Define what does the fact that a bond sells at a discount

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In this equation...what does IFA mean?

What is the YTM on a 10 year, 9% annual coupon, $1,000 par value bond that sells for $877? That sells for $1,134.20? What does the fact that a bond sells at a discount or at a premium tell you about the relationship between rd and the bond's coupon rate?
n= 10
PV=-887
pmt=90
FV=1000
r=unknown
Using the below equation to first find $877:
887 = $90(PVIFAr10) + $1,000(PVIFr10)
= $90 ((1- 1/(1+r)10)/r) + $1,000 (1/(1+r)10)
The Yield to Maturity = 10.91%

Reference no: EM131715583

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