Alice trang is planning to buy a six-year bond that pays a coupon of 10 percent semiannually. given the current price of $878.21, what is the yield to maturity on these bonds? (round to the closest answer.)

Given that the coupon rate is 10% p. a, given that the coupon is paid semi-annually, then the semi annual rat will be:

10/2=5%

hence the amount paid will be:

5/100*879.21

=$43.7605

hence the yield will be given by:

yield = (coupon) / (market price of bond)

43.7605/876.21

=0.04884%~0.05%