An investor bought a 10 ½% bond at 109. The bond would mature in 5 years. Compute the rate of yield to maturity. (Do not consider commission. Round answer to two decimal places.)

Yield To Maturity

the total return anticipated on a bond if the bond is held until it matures, considering both interest payments and capital gain.

10 ½% Bond

A bond that pays an annual interest rate of ten and a half percent of its face value.