You are the custodial trustee for the Monolithic-Multinational fixed income fund. (That is, you have physical possession of the bonds that the fund owns.) You receive an urgent call from Jean Surepicker, an asset manager at Monolithic. She says has just bought $70,000,000 worth of debt issued by the Raw Dough Baked Goods Company, but she has lost some information that she needs for a presentation. Specifically, she knows that the bonds have an internal rate of return of 8.97% (you can assume that this is the risk-adjusted market rate of interest that is appropriate for these bonds), they pay principal of $1,000 10 years from today, pay interest annually, with the next payment to be made one year from today, and sell in the market at $730. The final interest payment will be made on the maturity date. But Jean can't find the sheet of paper on which she'd written down the interest rate paid on the bonds, as a percentage of their principal value. Monolithic is one of your best customers. In fact, they are your only customer. So you just can't let Jean down. Calculate the stated rate of interest on the bonds, as a percentage of the principal value of the bonds (to the nearest 0.01%).

Hint: By using the annuity formula to value the interest payments, you should be able to write an equation that expresses the value of the interest payments (or of the entire bond) in terms of the market rate of interest (which is known), the number of payments (which is known), and the annual interest payment on the bonds (which is unknown). You can solve this equation for the amount of each year's interest payment.