Question: Assume that a 1 0 - year, $ 1 , 0 0 0 par value bond pays interest of $ 4 2 . 5 0

Assume that a 10-year, $1,000 par value bond
pays interest of $42.50 every six monthis. Also
assume that investors are willing to pay $948.64
for this bond. Given this information, determine
the investors' anniual required rate of return or
yield-to-maturity for this bond.
Assume that a 10-year, $1,000 par value bond pays interest of

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