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Cullumber Corp issued 10-year bonds four years ago with a coupon rate of 11.190 percent. At the time of issue, the bonds sold at par.
Cullumber Corp issued 10-year bonds four years ago with a coupon rate of 11.190 percent. At the time of issue, the bonds sold at par. Today bonds of similar risk and maturity must pay an annual coupon of 5.81 percent to sell at par value. Assuming semiannual coupon payments.
What is the bonds yield to maturity? (Round answer to 2 decimal places, e.g. 15.25.)
Bonds yield to maturity |
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