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Bond A is a 5 year 8 % bond priced at 1 0 2 . Bond B is a 4 year 6 % bond priced

Bond A is a

5

year

8 %

bond priced at

102 .

Bond B is a

4

year

6 %

bond priced at

88 .

What is the yield of a portfolio with

20 %

in bond A and

80 %

in bond B

?

Both bonds make semiannual coupon payments. Keep

4

decimal places as a percent, e

.

., 3.1234 % .

Show all work and final answers.

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