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Goodwill Industries is offering $10,000 par value bonds for sale. The bonds will mature in 20 years. The annual coupon interest rate is 11 percent,

Goodwill Industries is offering $10,000 par value bonds for sale. The bonds will mature in 20 years. The annual coupon interest rate is 11 percent, with payments to be made annually. Ringo Starr just purchased one bond at the current market price of $11,950.

a. Will the YTM of this bond be greater than or less than the coupon rate?

b. To the nearest whole percent, what is the YTM of Mr. Starr's bond?

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