Final answer:
The yield to maturity (YTM) for Abner Corporation's bonds can be calculated using the formula YTM = (Annual Interest + ([Face Value - Purchase Price] / Time to Maturity)) / Purchase Price.
Step-by-step explanation:
The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. To calculate the YTM in this case, we need to consider the bond's purchase price, face value, coupon rate, and time to maturity.
Given that the bonds mature in 16 years and pay 11% interest annually, if you purchase the bonds for $925, you can calculate the yield to maturity using the formula: YTM = (Annual Interest + ([Face Value - Purchase Price] / Time to Maturity)) / Purchase Price.
Substituting the values, we get: YTM = (11% + [($1,000 - $925) / 16 years]) / $925. Simplifying the expression gives us the yield to maturity.
Since the calculation is complex and usually requires a financial calculator or an iterative numerical method, we can't provide a precise YTM value in this explanation without additional computations.