Red Moon Co. has 9.2% coupon bond on the market with 18 years to maturity. The bonds make seminannual payments and currently sell for $106.8% of par.
1) What is the current yield on the bonds?
2) The YTM?
3) The effective annual yield?
4) Is the yield to maturity or effective annual yield a better measure of the interest rate on the semiannual coupon bond?
All underlying work must be shown please.