Manuel bought a $100,000 bond with a 5.5%coupon for $92,450 when it had five years remaining to maturity. What was the prevailing market rate at the time Manuel purchased the bond?

Assume that:

Bond interest is paid semi-annually.

The bond was originally issued at its face value.

Bonds are redeemed at their face value at maturity.

Market rates of return and yields to maturity are compounded semiannually.