What is the likely yield to maturity on the bonds

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Reference no: EM132037917

When originally issued, an investment in the bonds of Flushing Dough, Inc., promised to provide an annual coupon of 7.75%. The bonds have 4 years until maturity, a market price of $795, and are expected to pay all coupons on time. At maturity, however, the bonds are only forecasted to pay 82% of their par value. What is the likely yield to maturity on the bonds? (Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132037917

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