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Nelson Software Inc has bonds on the market with a YTM of 7.79%, a coupon rate of 7.5%, and a current yield of 7.73%. The

Nelson Software Inc has bonds on the market with a YTM of 7.79%, a coupon rate of 7.5%, and a current yield of 7.73%. The bonds have 22 years to maturity, pay semmiannual coupons, and are priced at 97. What is the effective annual yield on these bonds?

Multiple Choice

  • 7.55%

  • 8.55%

  • 7.94%

  • 7.5%

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