Calculate the semi-annual and annual Yield to Maturity (YTM) for a bond with the following characteristics: Face Value = Rs. 1000, Coupon Rate = 8% (paid semi-annually), Maturity = 10 years, Current S

Face Value $(FV) = \text{Rs. } 1000$
Coupon Rate $= 8\%$
Annual Coupon Payment $= 8\% \times 1000 = \text{Rs. } 80$
Interest is paid semi-annually, so Semi-annual Coupon Payment $(PMT) = \frac{80}{2} = \text{Rs. } 40$
Maturity $(N) = 10$ years
Number of semi-annual periods $(n) = 10 \times 2 = 20$ periods
Current Selling Price $(PV) = \text{Rs. } 950$

The bond price formula is:

Substituting the known values:

Where $r$ is the semi-annual YTM. This equation is solved iteratively or using a financial calculator.
Using a financial calculator or numerical method:
$N = 20$
$PV = -950$ (as it's an outflow)
$PMT = 40$
$FV = 1000$
Solving for $r$ (I/Y) gives approximately $4.3807\%$.
So, the semi-annual YTM is $4.3807\%$.

Annual YTM = Semi-annual YTM $\times 2$
Annual YTM $= 4.3807\% \times 2 = 8.7614\%$

The formula for effective annual yield is:

The bond's annual YTM is \boxed{\text{8.7614%}}.
The bond's effective annual YTM is \boxed{\text{8.954%}}.