Adams Food Service has issued 73/8 percent bonds that mature on July 15, 2046. The bonds are

Question:

Adams Food Service has issued 73/8 percent bonds that mature on July 15, 2046. The bonds are callable at $1,037.08 on July 15, 2021. Assume that interest is paid and compounded annually. Determine the yield-to-maturity (to the nearest 10th of 1 percent) if an investor purchased a $1,000 denomination bond for $900 on July 15, 2014.