Question: please be ORIGINAL QUESTION 4 Consider a bond selling for $87 that pays an annual coupon of 6% and has a face value of109. The

please be ORIGINAL QUESTION 4 Consider a bond selling for $87

please be ORIGINAL

QUESTION 4 Consider a bond selling for $87 that pays an annual coupon of 6% and has a face value of109. The next coupon is due in exactly one year and the bond will mature in exactly 2 years. (In short, this bond is exactly like the ones discussed in lecture.) What is the yield on this bond? (Give your answer as a decimal, so 5.4% is 0.054.)

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