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  3. 1. problem 7-10 (a) hooper printing inc. has bonds

1. Problem 7-10 (a) Hooper Printing Inc. has bonds outstanding with 9 years left to...

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Finance

1. Problem 7-10 (a) Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $905.35. The capital gains yield last year was - 9.465%. What is the yield to maturity? Calculate with at least four decimal places and round your answer to two decimal places.

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