Find Yield to maturity

[babygirl1501]

calculate the bank discount rate of return (DR) and the YTM-equilivant return for the following money market instruments.
A)purchase price, $96.00;par value $100.00; maturity 90 days
B) purchase price 97.50; par value 100.00; maturity 270 days

My work:

A) 100-96/100 * 360/90 = .16 or 16%= DR
B 100- 97.50 * 360/270 = .03 or 3% equals the DR

I can't figure out how to calculate the YTM? Can someone help me please?

 

[Denis]

Your work is correct; I'd make it more precise:
A) 100-96/100 * 360/90 = .16666... or 16.67% = DR
B 100- 97.50 * 360/270 = .034188... or 3.42% equals the DR

On the YTM, Google is worth a 1000 words(!):
http://thismatter.com/money/bonds/bond-yields.htm