Problem 1: Bonds issued by West Motel Chain have a par value of $1000, are selling for #1,100, and have 20 years remaining to maturity. The annual interest payment is 13.5% ($135). Compute the approximate yield to maturity.
Problem 2: Combine a trail and error approach with interpolation to find a more exact answer for this part.
A calculator can be used, but all calculations and explanations can be presented in MS Word instead of MS Excel.