Problem:
PBJ Corp. Ussed bonds on Jan 1 2006. The Bonds had a coupon rate of 5.5$ with interest paid semi-anually. The face value of the bonds is $1,000 and the bonds mature on Jan 1 2021.
Required:
Question: What is the yield to maturity for an PBJ corp bond on Jan 1 2012 if the market price of the bond on that date is $950.
A: 10.50%
B: 8.43$
C: 5.50$
D: 6.23%
Note: Please show how to work it out.