Problem:
You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 10.55 percent coupon bonds are selling at a price of $812.33. The bonds pay interest semiannually. These bonds are the only debt outstanding for the firm.
Required:
Question: What is the current YTM of the bonds?
Note: Explain in detail and show all computations in proper way.