Use the following spot yield curve: Time ½ Spot Rate 1.0% I 1 1.5% 11/2 2.0% 2 2.5% 2½ 3.0% 3 4.0% 31/2 5.0% 4 6.0% A four year bond matures for 5,000 and has annual coupons of 125. The price of the bond is calculated using the spot yield curve. Determine the annual yield rate on the bond. (Round your answer to 4 decimal places.)