Cricket Systems Co. plans to issue bonds with a par value of $1,000 and 30 years to maturity. These bonds will pay $25 interest every 6 months. Current market conditions are such that the bonds will be sold to net $1,205.62. What is the yield to maturity (YTM) on an annual basis that a broker would quote to an investor.

Please answer without using a financial calculator and without using excel. The final answer is 3.84%.