Problem
James is a bond analyst at AB Financial Corporation. Given the current economic scenario, he thinks cashflows sooner will be more valuable; hence, he plans to tilt the bond portfolio toward coupon-paying bonds. He observes that one of the bonds in his portfolio has 13.5 years to maturity, a YTM of 4.8%, a par value of $1,000, and a current price of $1,055. The bond makes semi-annual payments. He calculates the coupon rate on those bonds. What must be the number that he arrived at?