A retired couple wants to invest in bonds which have $10,000 par values and mature in 20 years. Coupons are paid semi-annually on a stated annual coupon rate of 6.5%. Their investment advisor has pointed out a bond with a yield to maturity of 7.75%. They have $150,000 to invest.

Three years after initial purchase, Martha wonders what the yield to maturity on the bonds is now. They are selling for $12,000 each.