4. Chulwoo buys a ten-year 1,000 par value 6% bond with semiannual coupons. The price assumes a nominal yield of 6%, compounded semiannually. As Chulwoo receives each coupon payment, Chulwoo immediately puts the money into an account earning interest at an annual effective rate of i.

At the end of ten years, immediately after Chulwoo receives the final coupon payment and the redemption value of the bond, Chulwoo has earned an annual effective yield of 7 on his investment in the bond. Calculate i.