9. Burleigh Grimes purchased at par a bond with a face value of $1,000. The bond had

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9. Burleigh Grimes purchased at par a bond with a face value of $1,000. The bond had five years to maturity and a 10% coupon rate. The bond was called two years later for a price of $1,200, after making its second annual interest payment.

Burleigh then reinvested the proceeds in a bond selling at its face value of$l,OOO, with three years to maturity and a 7% coupon rate. What was Burleigh's actual yield-to-maturity over the five-year period?

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