A bond with a par value of 1,000 has coupon payment dates of January 21 and July 21. The nominal coupon rate payable semi-annually is 6%. The bond matures on January 21, 2009. On January 21, 2007 a coupon payment is made. The bond is sold 45 days later with a settlement date of March 7, 2007, for a price of 980 (the price-plus-accrued)

Using the BOND worksheet on your calculator(BAII), calculate the buyer's yield to maturity.