In 2015, Ruby Ltd issued $100 million of Gold bonds due in July 16, 2016. At the issue date, the yield was 540 basis points (5.4%) above the yield on the Gold bonds due in April, 2017. The price and yield to maturity of the Gold issue at September 30, 2015-2017 was reported as follows:
Price to Maturity:
2015: 15.33%
2016: 16.68%
2017: 19.15%
The assumed yield on the Gold bond for the year 2016 is:
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