Cleveland State University is selling bonds to fund a new Convocation Center. The bonds mature in 15 years and have an offering price of 94.3, which means the buyer will pay $943 00 for a bond with a face value of $1,000 he bonds pays an attractive 6% Interest on Its face value each year It 15 Engineering Economy students pool their meager resources and buy $15,000 (face value) of these bonds today, what is the yield to the students after the 15 years?
Draw the cash flow diagram from the investors perspective.
Use the interpolation Method to find the yield.