Question $4$

New Homes has a bond issue with a coupon rate of $5\mathrm{.}5$ percent that matures in $8\mathrm{.}5$ years. The

bonds have a par value of $$1,000$ and a market price of $$1,022.$ Interest is paid semiannually.

What is the yield to maturity?

$6\mathrm{.}36$ percent

$6\mathrm{.}42$ percent

$5\mathrm{.}61$ percent

$5\mathrm{.}74$ percent

$5\mathrm{.}18$ percent