Coupon =$60
par value= 1000
issue price = 1000-84.54= 915.46
Time (n) =5
Approximate yield formula = (Coupon + (Par value - issue price)/n)/((par value + issue price)/2)
(60 + ((1000-915.46)/5))/((1000+915.46)/2)
=0.08030238167
or 8%
So approximate yield is 8%
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