Problem:
Serengeti Corp. has five-year bonds outstanding that pay a coupon of 11.00 percent. If these bonds are priced at $1,098.56. Assume semiannual coupon payments. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) What is the yield to maturity on these bonds?
Note: Provide support for your rationale.