The market price is $800 a 17-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semi-annual basis (4.5 percent semi-annually) what is the bond's yield to maturity?  The bond's yield to maturity is ____ % (Round to two decimal places.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...
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The market price is $800 a 17-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semi-annual basis (4.5 percent semi-annually) what is the bond's yield to maturity? 

The bond's yield to maturity is ____ % (Round to two decimal places.)

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