Based on the terms of the following coupon bond, project the annual cash flows to maturity.

Face value $5,000

Term: 6 years

Coupon (apr) 8%

Assume that, immediately after this bond was issued, market conditions changed and the market interest rate fell. The market price of the bond is observed to be $5,238. This is then the present value of the bond given the market yield to maturity. What is that rate (approximately)?

Is the interest rate (apr) determined in (b) a real or nominal rate?