Fitzgerald's

15-year

bonds pay

8

percent interest annually on a

$1,000

par value. If the bonds sell at

$945,

what is the bond's yield to maturity? What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference.

Question content area bottom

Part 1

a. The bond's yield to maturity if the bond pays interest annually is

enter your response here%.

(Round to three decimal places.)