Question $5$

Purple Eagles Inc. has a bond issue outstanding that pays a $4$ percent coupon and matures in

$14$ years. The bonds have a par value of $$1,000$ and a market price of $$964\mathrm{.}20.$ Interest is

paid annually. What is the yield to maturity?

$4\mathrm{.}34$ percent

$4\mathrm{.}35$ percent

$5\mathrm{.}61$ percent

$5\mathrm{.}74$ percent