A $1,000 par value bond sells for $900. It matures in 10 years, has a...
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A $1,000 par value bond sells for $900. It matures in 10 years, has a 10 percent coupon, pays interest semiannually, and can be called in 5 years at a price of $1,100. You think it is likely that interest rates will either remain at current levels or decrease [then use YTC] over the next 5 years. If you buy the bond, what is the most likely nominal rate that you can expect to earn? Round to 2 decimal points
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