Problem 8.10

Betty Harris wants to invest in four-year bonds that are currently priced at $869.26. These bonds have a coupon rate of 5.2 percent and make semiannual coupon payments. What is the current market yield on this bond? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)

Comments:

• I ended up with 5.8% and then 6.0%. Both answers are incorrect.
• My answer was incorrect
• How do you arrive at the correct answer?