Problem:
PK Software has 8.3 percent coupon bonds on the market with 22 years to maturity. The bonds make semiannual payments and currently sell for 110.00 percent of par.
Requirement 1: What is the current yield on PK's bonds? 7.55%
Requirement 2: What is the YTM?
Requirement 3: What is the effective annual yield?
Explain in detail and also provide all workings.