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Mrs. Geeta is a risk averse investor. She regularly invests in Bonds/FDs/RDs. Recently she has been told about the bonds which are 8% Coupon Bonds.

Mrs. Geeta is a risk averse investor. She regularly invests in Bonds/FDs/RDs. Recently she has been told about the bonds which are 8% Coupon Bonds. These bonds are issued at face value but will be redeemable at a premium of 5%. Interest is paid annually and tenor of the bond would be 10 years. Calculate YTM of bonds on the issue date.

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