What is the annual yield on a $10,000, 10 year, 7 5 percent bond that makes annual coupon payments and was purchased at 101 5 The bond has 8 years remaining until maturity ...

What is the annual yield on a $10,000, 10-year, 7.5 percent bond that makes annual coupon payments

Question:

What is the annual yield on a $10,000, 10-year, 7.5 percent bond that makes annual payments and was purchased at 101.5? The bond has 8 years remaining until maturity.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...