Problem: Yield to Call and Realized Rates of Return
Question: Goodwynn & Wolf Incorporated (G&W) issued a bond 8 years ago. The bond had a 29-year maturity, a 9% coupon paid annually, a 6% call premium and was issued at par, $1,000. Today, G&W called the bonds. If the original investors had expected G&W to call the bonds in 8 years, what was the yield to call at the time the bonds were issued? Round your answer to two decimal places.