Problem:
PK Software has 8.1 percent coupon bonds on the market with 24 years to maturity. The bonds make semiannual payments and currently sell for 109.5 percent of par.
Required:
Question 1: What is the current yield on PK's bonds?
Question 2: What is the YTM?
Question 3: What is the effective annual yield?
Note: Explain all steps comprehensively.