Question: Assume that everything stated in Problem 11 remains the same except that the bonds are not perpetual. Instead, they have a $1,000 par value and

Assume that everything stated in Problem 11 remains the same except that the bonds are not perpetual. Instead, they have a $1,000 and mature in 10 years.
In problem
The Great Northern Specific Railway has noncallable, perpetual bonds outstanding. When originally issued, the perpetual bonds sold for $955 per bond; today (January 1) their current market price is $1,120 per bond. The company pays a semiannual interest payment of $45 per bond on June 30 and December 31 each year.
a. Determine the implied semiannual yield to (YTM) on these bonds. {Tip: If all you have to work with are present value tables, you can still determine an approximation of the semiannual YTM by making use of a trial-and-error procedure coupled with interpolation. In fact, the answer to Problem 11, Part (a) - rounded to the nearest percent - gives you a good starting point for a trial-and-error approach.)
b. Using your answer to Part (a), what is the (nominal annual) YTM on these bonds? The (effective annual) YTM on these bonds?

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