Problem:
Tapley Corporation's 14 percent coupon rate, semiannual payment, $1000 par value bonds mature in 30 years. The bonds sell at a price of $1353.54, and their yield curve is flat.
Required:
Question: Assuming that interest rates in the general economy are expected to remain at their current level, what is the best estimate of Tapley's simple interest rate on new bonds?
Note: Please explain comprehensively and give step by step solution.