The redemption (maturity) date of bond series Q is December 31-th 2033 (12/31/2033)

The face value of the bond is $1000 and the yearly coupon rate is 2%. The coupon is paid once a year, at the end of December.

Assume that on July 2-nd 2023 (07/02/2023) you purchased the bond at a price of 75.7.

What is the yield to maturity on the bond? (In computational problems, show the basic equation(s) you used to solve the problem. In verbal problems, briefly explain your choice and why you dismissed the other answers. )

In your explanation show the excel function you used to solve the problem, including the values of the parameters you fed into the function (dates, price, coupon rate etc.)

1. 4%
2. 6%
3. 3%
4. 5%
5. None of the above