Problem:
Miguel purchases a $22000 9% fifteen-year par-value bond having annual coupons for a price to provide a 7% annual yield if the bond is held to maturity. Five years later, just after the receipt of the fifth coupon, he sells it at a price to provide the new purchaser a yield to maturity of 8%. Find the difference between Miguel's book value B5 and the invoice price.
Required:
Question: What was Miguel's actual yield for the five-year period?
Note: Show supporting computations in good form.