Question: This question is based on the following information on a bond: [ Bond Principal: R 1000000 Issue date: 1 February 2021 Maturity date: 31 January

This question is based on the following information on a bond: [ Bond Principal: R 1000000 Issue date: 1 February 2021 Maturity date: 31 January 2026 Coupon rate: 13.25% Coupon payment dates: 31 January and 31 July. The bond register closes one month before the coupon payment dates]. Suppose that the bond traded at a market price of R 97.500% for settlement on 30 September 2021. The number of days from 31 July 2021 to 30 September 2021 is 61 and the number of days from 30 September 2021 to 31 January 2022 is 123 . What is the annual yield the buyer in the secondary market receives? (note: if the answer is 5.55%, answer 5.55). Answer: %

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