Question: Rollins, Incorporated, has a 1 5 - year bond issue with a coupon rate of 4 . 5 percent that matures in 1 1 .

Rollins, Incorporated, has a 15-year bond issue with a coupon rate of 4.5 percent that matures in 11.5 years. The bonds have a par value of $1,000 and a market price of $1,105.50. Interest is paid semiannually. What is the yield to maturity?

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