McDonalds has issued 738 percent bonds that mature on July 15, 2036. The bonds are callable at

Question:

McDonald’s has issued 73⁄8 percent bonds that mature on July 15, 2036. The bonds are callable at $1,037.08 on July 15, 2011. Assume that interest is paid and compounded annually. Determine the yield to (to the nearest 10th of 1 percent) if an investor purchases a $1,000 denomination bond for $900 on July 15, 2004.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...