7.12

Four years ago, Lisa Stills bought six-year, 9.78 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $864.18, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round answer to 2 decimal places, e.g. 15.25%.) Realised rate of return 11.31 %