Problem:
You are planning the buy of the corporation bonds that were issued 10 years ago. When the bonds were originally sold, they had a 25-year maturity and a 12% coupon interest rate that is payable semiannually. The bond is currently selling for $1,308.72.
Required:
Question: What is the yield to maturity on the bonds?
a. 8.35%
b. 7.67%
c. 14.38%
d. 11.11%
Note: Please show how to work it out.