Ping An Health 7.45. 1

Suppose yield to maturity is R, then 1000 * (p/f, r, 8)+ 1000 * 0. 1 * (p/a, r, 8) =150.

When r=8%,1000 *1.08-8+1000 * 0.1* (1-kloc-0/.08-8)/0.

When r=7%,1000 *1.07-8+1000 * 0.1* (1-kloc-0/.07-8)/0.

(r-7%)/(8%-7%)=( 1 150- 1 179. 14)/( 1 14.93- 1 179. 14)

r = 0.07+( 1 150- 179. 14)/( 1 14.93- 1 179. 14)* 0.0 1 = 0.0745 = 7