Bond valuation--urgent

Originally posted by : Shishir
	Watters umbrella corp issued 12 year bonds 2 years ago at a coupon rate of 7.8%. The bonds make semiannual payments. If these bonds currently sell for 105% of par value, what is the YTM?

Current Price = 105 [ Assumed Face value = 100]

Remaining life to maturity = 10 year [Period = 20]

Redemable value =  100

Coupon payment = 7.8/2 = 3.9

Semi Annual YTM = [3.9 + (100-105)/20]/(100+105)/2 = .03561 [i.e. 3.561%]

Annual YTM = 3.561 X (12/6) = 7.12% Ans

What is the Bond Equivalent Yield for a 5 year, 8% bond ( semi annual coupon payment ) that is trading in the market for Rs. 852.8 ?