Carla Vista, Inc., has four-year bonds outstanding that pay a coupon rate of 8.0 percent and make coupon payments semiannually. If these bonds are currently selling at $920.890. What is the yield to maturity that an investor can expect to earn on these bonds? (Round answer to 1 decimal place, e.g. 15.2%.) Yield to maturity % What is the effective annual yield? (Round answer to 1 decimal place, e.g. 15.2%.) Effective annual yield

    K = Nx2
    Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k]     +   Par value/(1 + YTM/2)^Nx2
                       k=1
                      K =4×2
    920.89 =∑ [(8*1000/200)/(1 + YTM/200)^k]     +   1000/(1 + YTM/200)^4×2
                       k=1
    YTM% = 10.5
    EAR = [(1 +recurrent rate/no. of compounding periods) ^no. of compounding periods – 1]* 100
    Effective Annual Rate = ((1+8/2*100)^2-1)*100
    Effective Annual Rate% = 8.2