For all questions, assume a par value is $1,000 and semiannual bond interest payments.

A company in a line of business similar to Bay Paths recently issued at par noncallable bonds with a coupon rate of 5.8% and a maturity of twenty years. Moodys rated the bonds Aa1 and Standard & Poors awarded them AA. What rate of return (yield to maturity) did investors require on these bonds if the bonds sold at par value?