If yu hav a 6% bond that kost1.04845, yu get paed 5.72273% on the munee yu put up
Wen issuer bi bak the bond 5 yeers from now, him pae yu 1$ tu yer 1.04845 (loss).
5 yeers interest=6% av 1000$* 5 yeers=5*60=300$
But yu luze 48.45$ kauz yu bi abuv par.
Yu get 300-48.45=251.55$ over 5 yeers on 1048.45$ yu put up
251.55/1048.45=0.239925604
so(1+x%)^5=1.239925604
5*log10(1+x%)=log10(1.239925604)=0.09339562811259401
0.0933956/5=0.0186791256...
or bout 1.87%/yeer